Macroeconomic Equilibrium Occurs When

question 105

Multiple Choice

Macroeconomic equilibrium occurs when

• A)real GDP is equal to potential GDP.
• B)there is no inflation.
• C)the economy is fully employed.
• D)the price level equals the potential price level.
• E)the aggregate quantity demanded is equal to the aggregate quantity supplied.

Recognize how consumers' perceptions of value and pricing can be influenced by packaging and framing effects.

Identify cognitive biases such as self-serving bias, endowment effect, and availability heuristic and their impact on behavior.

Comprehend how framing effects influence decision-making and consumer behavior.

Distinguish between neoclassical economics and behavioral economics, especially regarding assumptions of rationality and decision-making processes.

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Definitions:

Federal Reserve Banks

The regional banks that make up the Federal Reserve System, the central banking system of the United States, responsible for implementing monetary policy, supervising and regulating banks, and providing financial services.

Federal Reserve Bank Presidents

Leaders of the twelve regional Federal Reserve Banks in the United States, playing key roles in monetary policy decisions.

Board of Governors

A governing body that oversees the operation and management of an organization, institution, or entity, like the Federal Reserve in the United States.

Deposit Insurance

A guarantee by a government or agency to cover deposits in the event of a bank failure, up to a certain amount.