Exhibit 3 Macro AD-AS Model     in Exhibit 3

question 38

Multiple Choice

Exhibit 3 Macro AD-AS Model     In Exhibit 3, the level of real GDP represented by Y_p:

• A)is potential real GDP for this economy.
• B)indicates that the economy is experiencing zero inflation.
• C)indicates that the economy is experiencing a recessionary gap.
• D)would be associated with considerable unemployment.

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Definitions:

Depressive Disorders

Mood disorders in which the change in mood is only in the direction of depression or lowered mood, followed by a return to normal mood with recovery. See also bipolar mood disorders.

Market Penetration

The strategy of selling more of a product or service to the existing market to increase its market share.

Cross Selling

The practice of selling additional products or services to existing customers, often related to their previous purchases to enhance customer value.

Converting Nonbuyers

The process of persuading individuals who have not previously purchased a product or service to make a purchase.