Short-Run Macroeconomic Equilibrium Cannot Be Achieved When

question 234

Multiple Choice

Short-run macroeconomic equilibrium cannot be achieved when:

• A) inflation rates are low.
• B) the short-run aggregate supply and aggregate demand curves intersect.
• C) the quantity of short-run aggregate supply exceeds the quantity of aggregate demand.
• D) inflation rates are high.

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Definitions:

Break-even Sales

The amount of revenue from sales at which a business neither makes a profit nor incurs a loss.

Fixed Expenses

Fixed expenses are costs that do not vary with the level of production or sales, providing stability to a company's budget, such as rent or insurance.

Operating Period

The time frame during which a company conducts its principal operations, typically one year for most financial reporting.

Break-even Sales

The amount of revenue needed to cover total costs, both fixed and variable, with no profit or loss.