When Prices Are Predetermined, the Level of Output That Equals

question 128

Multiple Choice

When prices are predetermined, the level of output that equals planned aggregate expenditure is called ________ output.

• A)the natural rate of
• B)potential
• C)short-run equilibrium
• D)induced

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Definitions:

Barriers to Entry

Obstacles that prevent new competitors from easily entering an industry or area of business.

Industry Structure

The characteristics that influence the nature of competition and pricing in a particular industry, including the number and size of firms, entry barriers, and product differentiation.

Government Restrictions

Regulations imposed by authorities to control or limit certain activities, behaviors, or operations.

Exclusive Right

A legal provision giving the holder the sole permission to produce, use, or sell a particular commodity or concept.