Which One of the Following Is TRUE

question 208

Multiple Choice

Which one of the following is TRUE?

• A) The intersection of aggregate demand and aggregate supply identifies an equilibrium interest rate and an equilibrium wage level.
• B) The intersection of aggregate demand and aggregate supply identifies an equilibrium interest rate and an equilibrium level of exports.
• C) The intersection of aggregate demand and aggregate supply identifies an equilibrium level of employment and an equilibrium level of investment.
• D) The intersection of aggregate demand and aggregate supply identifies an equilibrium price level and an equilibrium level of real GDP.

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Definitions:

Machinery on Approval

A sales agreement condition where the buyer can return the machinery if it doesn't meet specified requirements or expectations.

Insolvent

A financial state in which an entity is unable to pay its debts as they come due.

Claims

Demands for something due or believed to be due, often used in the context of insurance or legal cases.

Mirror Image Rule

In contract law, the rule that an acceptance must duplicate the terms in the offer.