The Average Price of Aggregate Output Is Called the Economy's

question 21

Multiple Choice

The average price of aggregate output is called the economy's _____.

• A) aggregate demand
• B) real GDP
• C) aggregate supply
• D) price level
• E) equilibrium

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Definitions:

Contribution Margin

The amount by which sales revenue exceeds variable costs, indicating how much revenue contributes to fixed costs and profit.

Contribution Margin

The amount of revenue available after variable costs have been deducted, which contributes towards covering fixed costs and generating profit.

Selling Price

The price at which a business offers its product or service for sale to consumers, determined by various factors including cost and market demand.

Manufacturing Overhead Cost

Indirect costs associated with manufacturing, not directly tied to the product, such as factory maintenance, utilities, and salary of the supervisory staff.