Macro Equilibrium Always Occurs

question 17

Multiple Choice

Macro equilibrium always occurs:

• A) When aggregate supply is greater than aggregate demand.
• B) When the labor force is fully employed.
• C) When aggregate demand equals aggregate supply at the average price level.
• D) At a zero inflation rate.

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Definitions:

Revenue

The cumulative revenue obtained from selling goods or services integral to a business's core functions.

Cost Recovery Method

A revenue recognition approach where no profit is recognized until all the costs of the goods sold have been recovered from revenues.

Merchandise Sold

The goods that have been sold by a company, typically referring to products sold rather than services rendered.

Gross Profit

The difference between the revenue generated from sales and the cost of goods sold, before accounting for operating expenses, interest, and taxes.