Short- Run Macroeconomic Equilibrium Always Occurs When the

question 95

Multiple Choice

Short- run macroeconomic equilibrium always occurs when the

• A)quantity of real GDP demanded equals the quantity of real GDP supplied.
• B)economy is below full employment.
• C)economy is above full employment.
• D)economy is at full employment.
• E)AD curve intersects the LAS curve.

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Definitions:

Transaction Costs

Expenses incurred when buying or selling a good or service, which can include fees, taxes, and other charges beyond the price of the product itself.

Complete Information

A state in which all participants in an economic transaction have full knowledge of the terms, conditions, and outcomes associated with the transaction.

Initial Allocation

The initial distribution of resources, goods, or assets among participants in an economy or market.

Inadvertent Breach

An unintentional failure to fulfill a contractual obligation or violation of a law, often due to oversight or misunderstanding.