When the Quantity of Real GDP Demanded Exceeds the Quantity

question 234

Multiple Choice

When the quantity of real GDP demanded exceeds the quantity of real GDP supplied,firms

• A)increase production and prices.
• B)decrease production and prices.
• C)increase production and lower prices.
• D)decrease production and increase prices.
• E)do not change production because aggregate demand and potential GDP will adjust.

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Definitions:

Reasonably Related

A legal standard used to determine if the connection between two concepts or actions is logical or justified, often in the context of regulatory or employment actions.

Compensatory Damages

Monetary awards given to a plaintiff to compensate for losses, injury, or harm suffered due to the defendant's actions.

Impossibility of Performance

A legal doctrine where a party is released from a contract because events have occurred making it objectively impossible to perform the contract's obligations.

Subject Matter

The substance or core topic under consideration or dispute in a legal case.