If the Quantity of Real GDP Demanded Is Less Than

question 86

Multiple Choice

If the quantity of real GDP demanded is less than the quantity of real GDP supplied, then

• A)aggregate demand changes to restore the equilibrium.
• B)the economy must be producing at potential GDP.
• C)the price level falls and firms increase production.
• D)the price level rises to restore the macroeconomic equilibrium
• E)the price level falls and firms decrease production.

---

Definitions:

Unorganized Interest Effect

Impact or influence arising from a group or sector that lacks formal representation or structure in lobbying or policy-making processes.

Electrical Appliances

Devices operated by electricity that are used for household functions such as cooking, cleaning, or personal care.

New Regulations

Recently implemented rules or laws designed to control or govern conduct, usually within a specific activity or industry.

Appliance Producers

companies engaged in the manufacture of electrical or mechanical devices designed for household use.