The Aggregate Output Demanded for a Given Price Level Occurs

question 53

Multiple Choice

The aggregate output demanded for a given price level occurs at the point where:

• A)an economy reaches the full employment of labor.
• B)aggregate expenditure equals real GDP.
• C)actual aggregate expenditures exceeds real GDP.
• D)inventories of goods and services are increasing.
• E)inventories of goods and services are decreasing.

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Definitions:

Per Capita GDP

The total Gross Domestic Product of a country divided by its population, indicating the average economic output per person.

Per Capita Income

The average income earned per person in a given area or country, calculated by dividing the total income by the population size.

Economic Growth

An increase in the capacity of an economy to produce goods and services, compared from one period of time to another.

Life Expectancy

The average number of years a person is expected to live based on demographic factors such as current age and gender, typically derived from statistical analysis.