Use the Table Below to Answer the Following Questions

question 96

Multiple Choice

Use the table below to answer the following questions.
Table 26.3.1

-Refer to Table 26.3.1. Consider the economy represented in the table. The economy eventually moves to its long-run equilibrium. In long-run equilibrium, the price level is ________ and real GDP is ________ billion.

• A)125; $550
• B)120; $600
• C)120; $500
• D)130; $600
• E)130; $500

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Definitions:

Wage Rates

The standard amount of pay given to workers per unit of time (hourly, daily, etc.) for their labor.

Labor Inputs

The work effort provided by employees that is used in the production process of goods and services.

AFC

Average Fixed Cost, which is the fixed cost of production divided by the quantity of output produced, illustrating how fixed costs dilute over larger production volumes.

AVC

AVC stands for Average Variable Costs, referring to the total variable costs of production divided by the quantity of output produced, indicating how variable costs per unit change with output levels.