Equilibrium GDP Will Not Exist Where Output Exceeds Aggregate Demand

question 100

Multiple Choice

Equilibrium GDP will not exist where output exceeds aggregate demand because businesses will notice that

• A)their profits are positive.
• B)inventory stocks are building up.
• C)inventory stocks are being depleted.
• D)their level of depreciation is rising.

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Definitions:

Nitrobenzene

An organic compound consisting of a benzene ring substituted with a nitro group (-NO2), used in the synthesis of aniline.

Anisole

An organic compound, specifically an ether, derived from methoxybenzene, used in perfume and pharmaceuticals.

Chlorobenzene

An aromatic organic compound with a chlorine atom substituting one hydrogen atom in benzene, used in the production of pesticides and industrial solvents.

Electrophilic Aromatic Substitution

Electrophilic aromatic substitution is a type of organic reaction in which an electrophile replaces a hydrogen atom in an aromatic ring, forming a new substituent on the ring.