-The Data in the Above Table Indicate That the Economy

question 40

Multiple Choice

$$\begin{array} { | l | l | l | l | } \hline \begin{array} { l } \text { Price } \\\text { level }\end{array} & \begin{array} { l } \text { A ggregate } \\\text { demand } \\\text { (trillions of } \\\text { 2005 dollars) }\end{array} & \begin{array} { l } \text { Short-run } \\\text { aggregate } \\\text { supply } \\\text { (trillions of } \\\text { 2005 dollars) }\end{array} & \begin{array} { l } \text { Long-run } \\\text { aggregate } \\\text { supply } \\\text { (trillions of } \\\text { 2005 dollars) }\end{array} \\\hline 140 & 9.0 & 11.5 & 10.0 \\\hline 130 & 9.5 & 11.0 & 10.0 \\\hline 120 & 10.0 & 10.5 & 10.0 \\\hline 110 & 105 & 10.0 & 10.0 \\\hline 100 & 11.0 & 9.5 & 10.0 \\\hline\end{array}$$
-The data in the above table indicate that the economy will be in a short-run macroeconomic equilibrium at a price level

• A) between 119 and 111.
• B) of 110.
• C) of 120.
• D) between 130 and 121.

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Definitions:

Hypothesis

An assumption that is tested through research and experimentation.

Original Hypothesis

The initial theory or assumption that is made at the beginning of a research or experimental process, proposing a potential outcome.

Adapt

The ability to change or adjust oneself or one's approach to meet different conditions or environments.

Terminate

To bring an end to something; in business, it can refer to the conclusion of a contract, the end of an employment relationship, or the cessation of operations.