If the Equilibrium Price Level Is 135 but the Actual

question 70

Multiple Choice

If the equilibrium price level is 135 but the actual price level is 150,then

• A)firms increase their production because they are able to sell their output at a higher than expected price.
• B)the quantity of real GDP demanded is less than the quantity of real GDP supplied.
• C)the quantity of real GDP demanded is greater than the quantity of real GDP supplied.
• D)aggregate demand will increase to restore equilibrium.
• E)aggregate demand will decrease to restore equilibrium.

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Definitions:

Indirect Method

A cash flow statement approach that adjusts net income for changes in balance sheet accounts to convert it from an accrual basis to a cash basis.

Net Income

The amount of profit that remains after all operating expenses, taxes, and costs have been subtracted from total revenue.

Net Cash

Net cash refers to the amount of cash that remains after subtracting a company's total cash outflows from its total cash inflows, indicating the company's liquidity position.