​The Figure Given Below Shows the Aggregate Demand Curve and the Short-Run

question 9

Multiple Choice

​The figure given below shows the aggregate demand curve and the short-run aggregate supply curve of an economy.In this figure,short-run equilibrium occurs at: Figure 15.4
​
​

• A)point b,where actual output exceeds potential output.
• B)point a,where actual output exceeds potential output.
• C)point c,where actual price level exceeds the expected price level.
• D)point c,where the actual price level is less than the expected price level.
• E)point b,where the actual price level exceeds the expected price level.

---

Definitions:

Charitable Pledges

Promises to donate a specific amount of money or resources to a charity or non-profit organization.

Consideration

The value, in the form of money, goods, services, or a promise thereof, that is exchanged between parties as part of a contract.

Inadequacy of Consideration

A situation where the value exchanged in a contract is significantly disproportionate, raising questions about the fairness of the agreement.

Wholesale Price

The cost of goods sold in bulk to retailers or distributors, generally lower than retail price.