-Using the Data in the Above Table, in the Short-Run

question 76

Multiple Choice

$$\begin{array} { | l | l | l | l | } \hline \begin{array} { l } \text { Price } \\\text { level }\end{array} & \begin{array} { l } \text { A ggregate } \\\text { demand } \\\text { (trillions of } \\\text { 2005 dollars) }\end{array} & \begin{array} { l } \text { Short-run } \\\text { aggregate } \\\text { supply } \\\text { (trillions of } \\\text { 2005 dollars) }\end{array} & \begin{array} { l } \text { Long-run } \\\text { aggregate } \\\text { supply } \\\text { (trillions of } \\\text { 2005 dollars) }\end{array} \\\hline 100 & 13 & 9 & 10 \\\hline 105 & 12 & 10 & 10 \\\hline 110 & 11 & 11 & 10 \\\hline 115 & 10 & 13 & 10 \\\hline\end{array}$$
-Using the data in the above table, in the short-run macroeconomic equilibrium, the price level is____________ and the level of real GDP is____________ .

• A) 105; $10 trillion
• B) 115; $10 trillion
• C) 110; $10 trillion
• D) 110; $11 trillion

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Definitions:

Public Perceptions

The collective beliefs or opinions held by the general population about specific topics or issues.

Operant Conditioning

A learning process whereby behaviors are influenced by consequences, including reinforcement and punishment, as proposed by B.F. Skinner.

Fundamental Principle

A basic concept or underlying rule that is foundational to a system, theory, or scientific discipline, guiding thinking and action.

Favourable Consequences

Positive outcomes or rewards that are likely to encourage a particular behavior to be repeated.