The Economy Is in Its Short Run Equilibrium at the Point

question 135

Multiple Choice

The economy is in its short run equilibrium at the point where the

• A) price level is stable.
• B) SAS curve intersects the LAS curve.
• C) AD curve intersects the LAS curve.
• D) AD curve intersects the SAS curve.

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Definitions:

Administrative Expense

Expenses incurred by a business that are not directly tied to a specific function such as manufacturing, production, or sales. These can include salaries of executive personnel, accounting fees, and HR services.

Budgeted Fixed Selling

Budgeted fixed selling refers to the predetermined set of expenses associated with selling a product that do not change with sales volume.

Estimated Cost

A forecast or approximation of the expenses associated with a project, product, or service.

Goods Sold

The total number of products or services that a company sells during a specific period.