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:

Parental Reading

The activity of parents reading to their children, which is beneficial for language acquisition and literacy skills.

Quasi-Experiment

A research design that attempts to establish a cause-and-effect relationship but lacks the random assignment of subjects to experimental and control groups.

Control Group

In experimental research, the group of participants that does not receive the intervention being tested, used as a benchmark to measure the effect of the intervention.

Independent Variable

A variable that is manipulated to determine its effects on a dependent variable in an experiment.