A Surplus Exists in the Market When

question 74

Multiple Choice

A surplus exists in the market when

• A)the quantity demanded exceeds the quantity supplied.
• B)supply and demand are equal.
• C)the quantity demanded is less than the quantity supplied.
• D)the supply curve has shifted to the left.
• E)the equilibrium price is too low.

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Definitions:

Domestically Produced Tools

Tools and equipment that are manufactured within a country's borders, typically used to refer to products made using domestic labor and resources.

Inflation Rate

The proportional rate that reflects how prices for goods and services are escalating, causing the purchasing capability to decline.

Nominal GDP

The gross domestic product measured in current prices without adjusting for inflation.

Real GDP

The calculation of a nation's economic production after accounting for changes in prices, such as inflation or deflation, which shows the actual value of the products and services generated.