When the Quantity of Real GDP Demanded Exceeds the Quantity

question 31

Multiple Choice

When the quantity of real GDP demanded exceeds the quantity of real GDP supplied, firms

• A) increase production and prices.
• B) decrease production and prices.
• C) increase production and lower prices.
• D) do not change production because aggregate demand and potential GDP will adjust.
• E) decrease production and increase prices.

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Definitions:

Behavior

The way in which one acts or conducts oneself, especially towards others.

Biological Approach

A perspective in psychology that emphasizes the influence of physical and biological processes on behaviour and mental states.

Testosterone

A primary male sex hormone that plays key roles in development, reproductive function, and muscle mass, but is also present in females in smaller amounts.

Aggression

Behavior intended to harm or injure another living being who is motivated to avoid such treatment.