If the Economy Is in Equilibrium at $400 Billion of GDP

question 22

Multiple Choice

If the economy is in equilibrium at $400 billion of GDP and the full-employment GDP is $500 billion,

• A)real and nominal GDP will both increase.
• B)GDP will remain at $400 billion unless aggregate expenditures change.
• C)real GDP will increase, but nominal GDP will decrease.
• D)the price level will increase.

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Definitions:

Decider

An individual or group responsible for making the final decision in a purchasing process, often holding the authority to approve significant business transactions.

Routine Orders

Regular or scheduled orders placed by businesses or individuals to ensure a consistent supply of products or services.

Buying Center

A group of individuals within an organization who are involved in making a purchase decision.

IT Engineer

A professional responsible for designing, implementing, and maintaining information technology systems and infrastructure.