​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
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• 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.

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Definitions:

Raw Materials

Basic materials from which products are made, often extracted from the earth and unprocessed or minimally processed before use.

Inputs

Resources, energy, or information fed into a system or process to achieve output or results, crucial for the functioning of various systems.

Stock Dividend

A payment made by a corporation to its shareholders in the form of additional shares, rather than cash.

Retained Earnings

The portion of net income left over for the company after it has paid out dividends to its shareholders.