The Intersection Between the Long-Run Aggregate Supply and Aggregate Demand

question 63

Multiple Choice

The intersection between the long-run aggregate supply and aggregate demand curves determines the:

• A) level of full-employment real GDP.
• B) level of prices (CPI).
• C) money supply.
• D) marginal product.
• E) both a and b.

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Definitions:

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they are available to all without depletion from use by others.

Rivalry

Competition between businesses or individuals for market share, resources, or achievements.

Excludability

Excludability is a property of a good or service that allows its owner to prevent others from using it without permission, which is important for classifying goods in economic terms.

Public Good

Services or commodities made available to every person in a society free of cost, courtesy of either the government or non-governmental organizations, devoid of profit objectives.