If the Equilibrium Price Level Is 135 but the Actual

question 24

Multiple Choice

If the equilibrium price level is 135 but the actual price level is 120, then

• A)firms decrease their production because they cannot sell the output they produce.
• B)the quantity of real GDP demanded is greater than the quantity of real GDP supplied.
• C)aggregate demand will increase to restore equilibrium.
• D)the quantity of real GDP demanded is less than the quantity of real GDP supplied.
• E)aggregate demand will decrease to restore equilibrium.

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Definitions:

Extinct

A status referring to a species, subspecies, or a larger group that no longer exists anywhere on Earth.

Parallel Distributed Processing

A computational approach in artificial intelligence and cognitive psychology, suggesting that information processing occurs through networks of interconnected units that operate in parallel.

Cognitive Psychologists

Specialists in the branch of psychology that studies mental processes including how people think, perceive, remember, and learn.

Unconscious

A segment of the psyche that the conscious mind cannot reach, yet it influences both behavior and emotions.