If the Quantity of Real GDP Demanded Is Less Than

question 287

Multiple Choice

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

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

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Definitions:

Marxism

A socio-economic theory proposed by Karl Marx, focusing on the struggle between social classes, particularly between the bourgeoisie and the proletariat.

Social Darwinist

Refers to the application of the natural selection theory to social, political, and economic issues, proposing that success and failure in these spheres are governed by natural laws.

Survival of the Fittest

is a concept from evolutionary theory, suggesting that individuals or species that are best adapted to their environment are more likely to survive and reproduce.

Front Region

A term from Erving Goffman's dramaturgical analysis referring to social settings where individuals perform specific roles for an audience, adhering to societal norms and expectations.