In the Long Run,aggregate Demand Is ________ for Determining Real

question 69

Multiple Choice

In the long run,aggregate demand is ________ for determining real GDP,and the "paradox of thrift" ________.

• A)not important; applies
• B)not important; does not apply
• C)the only influence; applies
• D)the most important influence; does not apply
• E)stable and important; applies

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Definitions:

Supply

The total amount of a specific good or service that is available to consumers.

Demand Determined

Refers to situations where the quantity of a good or service produced is directly influenced by consumer demand.

Government-imposed Maximum Price

A legally set ceiling on the price at which a good or service can be sold, typically to protect consumers from excessively high prices.

Economic Impact

The effect of an event, policy, or market condition on the economy, which can be observed in changes to GDP, employment, or investment.