Suppose the Full Employment Level of Real Output (Q) for a Hypothetical

question 158

Multiple Choice

Suppose the full employment level of real output (Q) for a hypothetical economy is $500, the price level (P) initially is 100, and prices and wages are flexible both upward and downward. Refer to the
Accompanying short-run aggregate supply schedules. In the long run, an increase in the price level
From 100 to 125 will

• A) increase real output from $500 to $560.
• B) decrease real output from $500 to $440.
• C) change the aggregate supply schedule from (a) to (c) and result in an equilibrium level of real output of $560.
• D) change the aggregate supply schedule from (a) to (b) and result in an equilibrium level of real output of $500.

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Definitions:

Genetic Proclivity

An individual's natural predisposition or inclination, influenced by their genetic makeup.

Taller

Having greater height in physical stature compared to average or specific reference points.

Caloric Intake

The total amount of calories consumed through food and drink within a specific time period, crucial for energy balance and weight management.

Nutritional Needs

The essential nutrients required by the body for growth, development, maintenance of normal body functions, and overall health.