If an Economy Is in Equilibrium at a Given Price

question 188

Multiple Choice

If an economy is in equilibrium at a given price level and a given output level,the aggregate demand/aggregate supply (AD/AS) model indicates that an unanticipated decrease in aggregate demand will cause

• A)real output to decline.
• B)the price level to fall.
• C)unemployment to increase.
• D)all of the above.

Understand the economic theories and practices advocated during the Progressive Era.

Examine the relationship between the Progressive Movement and issues of race and gender.

Assess the significance of journalistic efforts in exposing societal issues.

Analyze the impact of the Progressive Movement on the American political and legal system.

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Definitions:

Cost Structure

The mix of fixed and variable cost used by a firm.

Financial Leverage

Utilizing borrowed funds to amplify the prospective gains of an investment.

Operating Leverage

The degree to which a company uses fixed operating costs, affecting its earnings before interest and taxes (EBIT) with changes in sales.

Breakeven Point

The financial position at which total costs equal total revenues, indicating that there is no net loss or gain.