-Refer to the Information Above to Answer This Question

question 33

Multiple Choice

-Refer to the information above to answer this question.Assume that there is a surplus of 20 units.What does this mean?

• A)Price will rise.
• B)Price must be $5.
• C)The quantity traded is 80.
• D)Buyers are only willing to pay $2 less than the current price in order to buy all of the quantity supplied.

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Definitions:

Consumption

The action or process of using goods and services for personal needs or desires, typically considered as a component of GDP.

Keynes

Refers to John Maynard Keynes, a British economist whose theories on government economic intervention to mitigate the adverse effects of recessions and depressions significantly influenced modern macroeconomics.

Aggregate Demand

The entire market demand for goods and services in an economic setting, priced collectively at a given level during a specified period.

Aggregate Supply

The aggregate amount of commodities and services scheduled for sale by businesses within a national economic framework during a designated timeframe.