The Figure Below Shows the Price Level,real GDP,and the Potential

question 4

Multiple Choice

The figure below shows the price level,real GDP,and the potential output for an economy.According to those who favor a passive approach to policy,the economy will attain equilibrium at potential output when:​ ​
Figure 16-2
​

• A)the SRAS curve will shift to the left.
• B)the SRAS curve will shift to the right.
• C)either the money supply or government spending is increased.
• D)the money supply is decreased.
• E)aggregate demand will decrease.

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Definitions:

Marginal Revenue

The incremental profit made from the sale of an additional unit of a good or service.

Marginal Cost

The increment in overall expenses due to the output of one more unit of a product or service.

Marginal Revenue

The augmented income received from selling an extra unit of a good or service.

Total Revenue Curve

The total revenue curve graphically represents the relationship between total revenue gained by a business and the quantity of a product sold, showing how revenue changes as sales volume varies.