Exhibit 10-7 Aggregate Supply and Demand Curves in Exhibit

question 12

Multiple Choice

Exhibit 10-7 Aggregate supply and demand curves In Exhibit 10-7, the aggregate demand and supply curves reflect an economy in which:

• A)full employment is at $1,000 billion GDP.
• B)excess aggregate supply is created when there is a shift from AD₁ to AD₂.
• C)excess aggregate demand forces prices up to P = 120.
• D)excess aggregate demand causes prices to stabilize at P = 110.
• E)a new equilibrium is found at point b.

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Definitions:

Sample Mean

The average value of a set of observations or data points in a sample.

Marathon Runners

Athletes who participate in a marathon, a long-distance running race with an official distance of 42.195 kilometers (approximately 26.219 miles).

Production Filling

The process in manufacturing where products are filled into their final packaging, often under controlled conditions to meet standards.

Historical Standard Deviation

A measure of volatility or variability based on past data, indicating how much the values in a dataset have deviated from the mean over a certain period.