When the Price Level Falls from 135 to 120,the Aggregate

question 234

Multiple Choice

When the price level falls from 135 to 120,the aggregate level of GDP supplied falls from $140 billion to $125 billion.This ________ relationship represents the ________ relationship between GDP and the price level.

• A)negative; short-run
• B)positive; short-run
• C)negative; long-run
• D)positive; long-run

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Definitions:

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

HR Unit

A division within a company focused on employee recruitment, management, and company policies adherence.

Specialized Subunits

Distinct divisions or sections within an organization tasked with specific functions or responsibilities, often to increase efficiency or expertise.

Legal Regulations

Rules and guidelines enforced by government agencies to control behavior, ensure fairness, and protect both public and private interests.