In a Short-Run Macroeconomic Equilibrium, Real GDP Exceeds Potential GDP

question 210

Multiple Choice

In a short-run macroeconomic equilibrium, real GDP exceeds potential GDP. If aggregate demand does not change, then the

• A) long-run aggregate supply curve will shift leftward as the money wage rate rises.
• B) short-run aggregate supply curve will shift rightward as the money wage rate falls.
• C) long-run aggregate supply curve will shift leftward as the money wage rate falls.
• D) short-run aggregate supply curve will shift leftward as the money wage rate rises.

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Definitions:

Business Firm

An organization engaged in commercial, industrial, or professional activities with the aim of generating profits.

Market Segmentation

The practice of dividing a target market into distinct groups of consumers with similar needs or characteristics for more effective marketing.

Geographic Segmentation

The process of dividing a market into segments based on the geographic locations of consumers, such as countries, states, or cities.

Demographic Segmentation

The division of a market into segments based on variables such as age, gender, income, occupation, and education.