In the Short Run, Changes in Real GDP Are Primarily

question 52

Multiple Choice

In the short run, changes in real GDP are primarily determined by changes in factor- utilization rates which, in turn, are due to changes in

• A)aggregate demand only.
• B)aggregate supply only.
• C)aggregate supply because when firms increase prices they are then willing to produce more.
• D)aggregate demand because increases in demand will lead to increases in output.
• E)both aggregate demand and aggregate supply.

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Definitions:

Antitrust Liability

Legal responsibility incurred due to violating antitrust laws, which aim to promote competition and protect consumers from monopolistic practices.

Trade and Commerce

Activities involving the exchange of goods and services between businesses or entities across geographical boundaries.

Robinson-Patman Act

A United States federal law designed to prevent anticompetitive practices by producers, specifically price discrimination.

Secondary Level Price Discrimination

A pricing strategy where prices are varied based on some attribute of the purchaser or the purchase context, not directly on production costs or primary market segments.