If the Quantity of Real GDP Demanded Is Greater Than

question 158

Multiple Choice

If the quantity of real GDP demanded is greater than the quantity of real GDP supplied,then

• A)aggregate demand changes to restore equilibrium.
• B)the price level falls to restore the macroeconomic equilibrium.
• C)the economy must be producing at potential GDP.
• D)the price level falls and firms decrease production.
• E)the price level rises and firms increase production.

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An instinctive response to perceived threats or dangers, often for survival purposes.

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