If the Equilibrium Price Level Is 135 but the Actual

question 24

Multiple Choice

If the equilibrium price level is 135 but the actual price level is 120, then

• A) the quantity of real GDP demanded is less than the quantity of real GDP supplied.
• B) aggregate demand will decrease to restore equilibrium.
• C) aggregate demand will increase to restore equilibrium.
• D) firms decrease their production because they cannot sell the output they produce.
• E) the quantity of real GDP demanded is greater than the quantity of real GDP supplied.

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Definitions:

Conceptual Hierarchies

Structures that arrange knowledge and concepts from the most general to the most specific.

Species

A group of living organisms consisting of similar individuals capable of exchanging genes or interbreeding.

Source Monitoring

The process of determining the origins of our memories, knowledge, or beliefs.

Episodic Memory

A form of lasting memory that deals with remembering particular incidents, contexts, and personal experiences, along with the emotions and settings linked to these memories.