Equilibrium GDP Is Reached When

question 47

Multiple Choice

Equilibrium GDP is reached when

• A) aggregate expenditure exceeds GDP
• B) aggregate expenditure is less than GDP
• C) aggregate expenditure equals the level of output
• D) the level of output is greater than aggregate expenditure
• E) the level of output is less than aggregate expenditure

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Definitions:

Price-Discriminate

The practice of charging different prices to different consumers for the same good or service, based on factors like location, buying habits, or willingness to pay.

Higher Prices

Typically the result of increased demand or reduced supply, leading to a rise in the cost of goods and services.

Deadweight Loss

An economic inefficiency that occurs when the equilibrium for a good or service is not achieved or is not allocatively efficient.

Monopoly

A market structure where a single firm controls the entire market for a good or service, with no close substitutes available.