The Figure Given Below Represents the Equilibrium Real GDP and Price

question 61

Multiple Choice

The figure given below represents the equilibrium real GDP and price level in the aggregate demand and aggregate supply model.?Figure 8.3

-Refer to Figure 8.3. If AS₁ and AD₁ represent the initial aggregate demand and supply in the economy, the long-run equilibrium real GDP will be _____ billion.

• A) $100
• B) $200
• C) $300
• D) $400
• E) $500

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Definitions:

Utilitarianism

A theory in ethics and philosophy that states the best action is the one that maximizes utility, primarily defined in terms of well-being and happiness.

Greatest Good

A concept often associated with utilitarianism, referring to the action that achieves the highest level of happiness or benefit for the greatest number of people.

Greatest Number

A concept often related to utilitarian philosophy, focusing on actions that benefit the majority or largest portion of a community.

Self-Assessment

The process of evaluating one's own strengths, weaknesses, and performance.