Figure 13-5 Shows the Short-Run Macroeconomic Equilibrium of an Economy

question 47

Multiple Choice

Figure 13-5 shows the short-run macroeconomic equilibrium of an economy. Which of the following will happen in the short run if there is an increase in aggregate demand?Figure 13-5

• A)The creation of an inflationary gap
• B)The creation of a recessionary gap
• C)The restoration of the economy to its long-run equilibrium
• D)A fall in the aggregate price level
• E)An increase in the level of unemployment in the economy

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Definitions:

Customers' Responses

Feedback or reactions of customers to a product, service, or interaction with a business.

Price Lining

A pricing strategy where products or services are grouped into categories based on different price points to target various consumer segments.

Target Pricing

A pricing strategy where the selling price of a product is calculated based on the desired profit margin and the cost to make or buy the product, aiming to ensure competitiveness and affordability.

Product Composition

The combination of different components, materials, or elements that make up a product.