Figure 13-10 Shows the Short-Run Macroeconomic Equilibrium of an Economy

question 52

Multiple Choice

Figure 13-10 shows the short-run macroeconomic equilibrium of an economy. Suppose the economy is currently at Point A. As the economy adjusts from short-run equilibrium to long-run equilibrium, _____.Figure 13-10​

• A)the price level and real GDP would rise
• B)the price level would rise and real GDP would fall
• C)the price level and real GDP would fall
• D)the price level would fall and real GDP would rise
• E)short-run aggregate demand will decrease

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Definitions:

End-of-Year

A term that refers to the conclusion of a fiscal or calendar year, a time often used for accounting and inventory purposes.

Additional Costs

Additional costs refer to expenses that are not typically included in the initial budget or cost estimates, such as unexpected fees, charges, or overheads.

Plant Assets

Long-term tangible assets that are used in the production of goods and services and are not intended for resale.

Productive Capabilities

The capacity of a system, entity, or resource to produce goods or services of value, often influenced by technological, human, and physical resources.