In Short- Run Macroeconomic Equilibrium

question 93

Multiple Choice

In short- run macroeconomic equilibrium,

• A)real GDP is less than potential GDP.
• B)the price level is fixed and short- run aggregate supply determines real GDP.
• C)real GDP equals potential GDP and aggregate demand determines the price level.
• D)real GDP and the price level are determined by short- run aggregate supply and aggregate demand.

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Definitions:

Sales Mix

The variation in the quantities and types of products or services that a company sells, influencing the total revenue and profits.

Production Information

Data related to the manufacturing process, including quantities produced, costs, and production times.

Direct Labor Hours

The hours worked by employees that can directly be attributed to specific units of production.

Time and Materials Pricing

A pricing method where the customer is charged for the direct labor hours at a specific rate and the cost of materials used.