Exhibit 5.1 -Refer to Exhibit 5.1, Which Shows the Aggregate Demand and the Aggregate

question 175

Multiple Choice

Exhibit 5.1

-Refer to Exhibit 5.1, which shows the aggregate demand and supply curves for the United States. From the beginning of period 1 to the end of period 2, _____

• A) real GDP decreased and then increased.
• B) real GDP increased and then decreased.
• C) real GDP fell from $10,000 to $6,000.
• D) real GDP remained constant at $6,000.
• E) the inflation rate fell from 4 percent to 2 percent.

---

Definitions:

Smaller Output

Production of fewer goods or services, often indicating a reduction in manufacturing or business activity levels.

Concentration Ratios

Measures that indicate the extent of market control by the largest firms within an industry, used to assess competitiveness.

Foreign Imports

Goods and services brought into one country from another for sale, which can impact the domestic economy in terms of production, employment, and price levels.

Top Ten Firms

The largest ten companies in a given industry or market based on criteria such as revenue, market capitalization, or number of employees.