In the Short Run, If Prices Were Above Equilibrium

question 77

Multiple Choice

In the short run, if prices were above equilibrium,

• A) excess aggregate demand for goods and services would place downward pressure on prices.
• B) excess aggregate supply of goods and services would place upward pressure on prices.
• C) excess aggregate demand for goods and services would place upward pressure on prices.
• D) excess aggregate supply of goods and services would place downward pressure on prices.

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Definitions:

Proportions

The quantitative relationship between two amounts, showing the number of times one value contains or is contained within the other.

Portfolio Management

The act of making investment decisions to meet specified investment goals for the benefit of the investors.

Active Asset Allocation

Active Asset Allocation is a strategy in which an investor adjusts the proportions of various assets in a portfolio based on current market conditions and forecasts to try to maximize returns.

Market Conditions

The environmental and economic factors that affect the supply and demand, prices, and the success of businesses within a particular market.