The Table Gives the Aggregate Demand and Aggregate Supply Schedules

question 61

Multiple Choice

The table gives the aggregate demand and aggregate supply schedules for a nation.
-Refer to the table above.If the price level is 120,then the aggregate quantity demanded is ________ than the aggregate quantity supplied and the price level ________.

• A)greater;rises
• B)less;falls
• C)less;rises
• D)greater;falls
• E)less;might fall,rise or not change depending on whether real GDP is more than,less than or equal to potential GDP.

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Definitions:

Solver

A software tool that finds the optimal solution to a mathematical model or equation, often used in optimization and decision-making processes.

Number of Hours

The total amount of time, counted in hours, spent or required for a particular activity or process.

Monthly Profit

The net amount of money gained by a business during a one-month period after all expenses have been paid.

Binding Constraint

A constraint in an optimization problem that directly limits the ability to achieve an optimal solution, where any relaxation of the constraint would improve the outcome.