Consider the AD/AS Macro Model

question 67

Multiple Choice

Consider the AD/AS macro model. Suppose there is an increase in aggregate demand and, simultaneously, a decrease in aggregate supply. The result will be a

• A)rise in real GDP and a rise in the price level.
• B)rise in real GDP and a fall in the price level.
• C)an indeterminate change in real GDP and a fall in the price level.
• D)an indeterminate change in real GDP and a rise in the price level.
• E)rise in real GDP but price level changes will be indeterminate.

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Definitions:

Division's Turnover

A financial metric that measures the revenue generated by a specific division of a company relative to its assets, used to evaluate the division's efficiency in generating sales.

Manufacturing Cycle Efficiency

A performance metric that evaluates the effectiveness of the manufacturing process, focusing on the proportion of value-added time to total lead time.

MCE

Manufacturing Cycle Efficiency, a metric measuring the proportion of production time that is value-added.

Net Operating Income

Income from operations after deducting operating expenses but before interest and taxes.