In Short-Run Macroeconomic Equilibrium

question 23

Multiple Choice

In short-run macroeconomic equilibrium

• A) real GDP equals potential GDP and aggregate demand determines the price level.
• B) the price level is fixed and short-run aggregate supply determines real GDP.
• C) real GDP and the price level are determined by short-run aggregate supply and aggregate demand.
• D) real GDP is less than potential GDP.

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Definitions:

Toroid

A doughnut-shaped component used in magnetic circuits, with a coil of wire wrapped around a ferromagnetic core to concentrate magnetic fields.

Tape-Wound Core

A core made by winding a continuous length of magnetic metal into a spiral.

Metal Sheets

Flat pieces of metal of uniform thickness, produced by rolling or hammering, used in a wide range of manufacturing and construction processes.

Continuous Tape

A long, uninterrupted strip of material, often used for recording or measuring.