Figure 4-17 -Refer to Figure 4-17.At a Price of

question 13

Multiple Choice

Figure 4-17
-Refer to Figure 4-17.At a price of

• A)$2,there is a shortage of 6 units.
• B)$5,there is a surplus of 25 units.
• C)$5,there is a shortage of $25.
• D)$7,there is a shortage of 4 units.

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Definitions:

Aggregate Expenditure

The total amount spent on an economy’s goods and services, by households, businesses, the government, and foreign buyers.

Imports

Goods and services that are brought into a country from abroad for sale.

Decreases

A reduction or decline in value, amount, or level.

Constant Dollar

A term used to describe a dollar value that has been adjusted for inflation to reflect purchasing power at a specific point in time.