12.2 Equilibrium in Aggregate Demand and Supply Analysis

question 5

Multiple Choice

12.2 Equilibrium in Aggregate Demand and Supply Analysis
AD - AS Equilibrium
-On the graph above,consider a point A on the aggregate supply curve and above the aggregate demand curve.At this point,________.

• A)quantity demanded equals output,but the inflation rate will fall,so output will rise
• B)quantity demanded is greater than quantity supplied,so the inflation rate will rise
• C)output is greater than the quantity demanded,so output will fall
• D)the aggregate demand curve will shift to the right until quantity demanded is equal to quantity supplied
• E)none of the above

Understand the concept of General Adaptation Syndrome and its stages.

Identify the physiological responses of the nervous system to stress.

Recognize the role of the immune system in stress and how psychological factors affect it.

Describe the effects of prolonged stress on physical health.

---

Definitions:

Marginal-Cost Curve

A graphical representation that shows how the cost of producing one additional unit of a good varies as the production volume changes.

Average-Fixed-Cost Curve

A graphical representation that shows the fixed costs of production per unit of output declining as the quantity of output increases.

Marginal-Cost Curve

A graphical representation that shows the cost of producing one more unit of a good.

Average-Total-Cost Curve

A graphical representation showing how the average total cost of production changes as the quantity of output is altered.