The Figure Given Below Represents the Equilibrium Real GDP and Price

question 84

Multiple Choice

The figure given below represents the equilibrium real GDP and price level in the aggregate demand and aggregate supply model.
Figure 8.3

-Refer to Figure 8.3. If AS1 and AD1 represent the initial aggregate demand and supply in the economy, the long-run equilibrium real GDP will be _____ billion.

• A) $100
• B) $200
• C) $300
• D) $400
• E) $500

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Definitions:

Sales Forecasts

The process of estimating future sales. It helps businesses make informed decisions regarding inventory management, workforce needs, and financial planning.

Historical Trends

Analysis of past data to identify patterns or changes over time that may influence future outcomes or behaviors.

Economic Forecasts

Predictions about future economic conditions, including growth rates, inflation, and employment, based on current and historical data.

FA/Sales Ratio

Fixed Assets to Sales Ratio; measures the efficiency of a firm's use of its fixed assets to generate sales.