-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

Understand the conditions for a firm to continue or cease production in the short run.

Distinguish between short-run and long-run decisions in competitive markets.

Recognize the characteristics and implications of being in a perfectly competitive market.

Grasp the concept of maximizing profits through marginal analysis in competitive markets.

---

Definitions:

SUD (Substance Use Disorder)

A medical condition characterized by the uncontrollable use of substances despite harmful consequences, previously known as drug or substance addiction.

Chronic Relapsing Condition

A long-term illness characterized by periods of improvement followed by recurrence of symptoms, often seen in addiction and some chronic diseases.

Cognitive-Behavioral Therapeutics

A form of psychotherapy that treats problems and boosts happiness by modifying dysfunctional emotions, behaviors, and thoughts.

CENAPS

An acronym for the Center for Applied Sciences, which develops models and strategies for the treatment of addiction and related disorders.