If the Quantity of Real GDP Demanded Is Greater Than

question 255

Multiple Choice

If the quantity of real GDP demanded is greater than the quantity of real GDP supplied,then

• A)the economy must be producing at potential GDP.
• B)the price level falls and firms decrease production.
• C)the price level rises and firms increase production.
• D)the price level falls to restore the macroeconomic equilibrium.
• E)aggregate demand changes to restore equilibrium.

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Definitions:

Object Permanence

Object permanence is the understanding that objects continue to exist even when they cannot be seen, heard, or otherwise sensed, a critical developmental milestone in infants.

Problem Solving

A mental process that involves discovering, analyzing, and solving problems to reach a goal or answer.

Ache

A continuous or persistent dull pain in a part of the body.

Motor Abilities

Physical skills related to movement and coordination of the body’s muscles, essential for performing various activities.