-In the Above Figure, the Aggregate Demand Curve Is AD

question 13

Multiple Choice

-In the above figure, the aggregate demand curve is AD?, so the long-run equilibrium level of real GDP is

• A) $16 trillion.
• B) $16.5 trillion.
• C) more than $16 and less than $16.5 trillion.
• D) None of the above answers is correct.

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Definitions:

Diminishing Marginal Utility

The more of any one good consumed in a given period, the less incremental satisfaction is generated by consuming a marginal or incremental unit of the same good.

Candy Bars

Sweet confectionery products that typically consist of chocolate and may include other fillings like nuts, caramel, nougat, or wafers.

Total Utility

The total satisfaction or benefit received by consuming a particular amount of a good or service.

Marginal Utility

The extra pleasure or benefit gained by a consumer from using an additional unit of a product or service.