The Model of Short-Run Economic Fluctuations Focuses on the Price

question 424

Multiple Choice

The model of short-run economic fluctuations focuses on the price level and

• A)real GDP.
• B)economic growth.
• C)the neutrality of money.
• D)None of the above is correct.

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Definitions:

Total Utility

The total satisfaction received from consuming a certain quantity of goods or services.

Total Utility

The total satisfaction or benefit received by consuming a given total quantity of a good or service.

Marginal Utility

Marginal utility is the additional satisfaction a consumer gains from consuming one more unit of a good or service.

Diminishing Marginal Utility

Diminishing marginal utility is an economic principle stating that as a person consumes more of a good or service, the satisfaction (utility) gained from each additional unit decreases.