If Aggregate Demand Equals Output

question 38

Multiple Choice

If aggregate demand equals output,

• A)the economy is in a recession.
• B)output will increase.
• C)output will fall.
• D)the economy is at its equilibrium level.

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Definitions:

Price-elastic

Descriptive of a product or service for which demand significantly increases or decreases as the price changes.

Health Care

The organized provision of medical services to individuals or communities to maintain or improve their health.

Household Budget

A budgeting strategy that distributes anticipated personal earnings into categories for spending, saving, and paying off debts.

Price Elasticity

An assessment of the sensitivity of the demand for an item to shifts in its cost.