-In the Above Figure, at the Point Where AD Equals

question 369

Multiple Choice

-In the above figure, at the point where AD equals SAS

• A) real GDP exceeds potential GDP.
• B) potential GDP exceeds real GDP.
• C) the economy is in a recession.
• D) the unemployment rate is zero.

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Definitions:

Marginal Cost

The cost of producing one more unit of a good or service.

Government

Government refers to the group or system of individuals governing an organized community, often a state, and it is responsible for creating and enforcing laws, policies, and regulations.

Total Surplus

The sum of consumer and producer surplus, representing the total net benefit to society from the production and consumption of goods or services.

AC

Short for Alternating Current, a type of electrical current where the flow of electric charge periodically reverses direction.