Suppose the Full-Employment Level of Real Output (Q) for a Hypothetical

question 86

Multiple Choice

Suppose the full-employment level of real output (Q) for a hypothetical economy is $500 and that the price level (P) initially is 100.Use the following short-run aggregate supply schedules to answer the next question. Refer to the information above.If the price level unexpectedly declines from 100 to 75, the level of real output in the short run will:

• A)rise from $500 to $560.
• B)fall from $500 to $440.
• C)fall from $560 to $500.
• D)rise from $440 to $500.

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Definitions:

Kidney

A pair of organs in the urinary system that filter waste products from the blood and excrete them in urine.

Microscopic Units

Small units of measurement typically used to describe dimensions of cells and microorganisms, not visible to the naked eye.

Calyx

The cuplike division of the kidney pelvis.

Medulla

A central region of an organ, notably in the brain (medulla oblongata) affecting vital functions like breathing and heart rate, and in the kidney involved in regulating electrolyte balance.