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:

Media Conglomerate

A large company that owns numerous companies involved in various media-related industries, such as television, radio, publishing, movies, and the internet.

Capital Cities/ABC

A major American media company that was acquired by The Walt Disney Company in 1996, once serving as the parent organization of ABC Television Network.

Sumner Redstone

A media magnate and billionaire known for his ownership and control of companies like Viacom and CBS Corporation, playing a significant role in the entertainment industry.

Viacom

A multinational media conglomerate known for owning various television networks, movie production and distribution labels, and related businesses.