The Equilibrium Price Level and Level of Real Output Occur

question 101

Multiple Choice

The equilibrium price level and level of real output occur where:

• A)real output is at its highest possible level.
• B)exports equal imports.
• C)price is at its lowest level.
• D)the aggregate demand and supply curves intersect.

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Definitions:

Net Realizable Value

The estimated selling price of goods, minus the costs of their sale or disposal, used in accounting to determine the value of an asset in the balance sheet.

Unrealized Loss

A decrease in the value of an investment or asset that has not been sold, hence the loss has not been realized.

Fair Value Adjustment

A correction made to the reported value of an asset or liability to align it with its market value.

Discounted Note

A debt instrument that is sold or issued for less than its face value and whose return comes from the difference between the purchase price and the face value paid at maturity.