-The Data in the Above Table Show That When the |

question 370

Multiple Choice

$$\begin{array} { | l | l | l | l | } \hline \begin{array} { l } \text { Price } \\\text { level }\end{array} & \begin{array} { l } \text { A ggregate } \\\text { demand } \\\text { (trillions of } \\\text { 2005 dollars) }\end{array} & \begin{array} { l } \text { Short-run } \\\text { aggregate } \\\text { supply } \\\text { (trillions of } \\\text { 2005 dollars) }\end{array} & \begin{array} { l } \text { Long-run } \\\text { aggregate } \\\text { supply } \\\text { (trillions of } \\\text { 2005 dollars) }\end{array} \\\hline 140 & 4 & 8 & 7 \\\hline 130 & 5 & 7 & 7 \\\hline 120 & 6 & 6 & 7 \\\hline 110 & 7 & 5 & 7 \\\hline 100 & 8 & 4 & 7 \\\hline\end{array}$$
-The data in the above table show that when the price level is 120, the economy

• A) has a recessionary gap.
• B) is in a long-run macroeconomic equilibrium.
• C) will have falling money wage rates sometime in the future.
• D) has an inflationary gap.

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Definitions:

Ribosomes

Cellular organelles that serve as the site of protein synthesis in the cell.

Ribosomes

Cellular structures responsible for synthesizing proteins from amino acids during the process of translation.

Protein Synthesis

The process in which cells make proteins, involving transcription of DNA to mRNA and translation of mRNA to a polypeptide chain.

Peroxisomes

Organelles found in virtually all eukaryotic cells, involved in the catabolism of very long chain fatty acids, branched chain fatty acids, bile acids, and xenobiotics.