-The Table Above Gives the Aggregate Demand and Aggregate Supply

question 175

Multiple Choice

-The table above gives the aggregate demand and aggregate supply schedules in Lotus Land. The short-run macroeconomic equilibrium is a price level of ________ and a real GDP of ________.

• A) 90; $300
• B) 100; $400
• C) 110; $500
• D) 120; $400

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Definitions:

Owner's Equity

Owner's equity represents the owner's stakes or claims against the assets of a business, equal to the total assets minus total liabilities.

Liabilities

Financial obligations or debts that a business or individual owes to others, which are expected to be settled over time through the transfer of economic benefits like cash or goods.

Assets

Resources owned or controlled by a business that are expected to benefit future operations.

Accounting Equation

The foundational equation in accounting, Assets = Liabilities + Owner's Equity, showing the relationship between a company's assets, liabilities, and equity.