When the Price Level Falls from 135 to 120,the Aggregate

question 234

Multiple Choice

When the price level falls from 135 to 120,the aggregate level of GDP supplied falls from $140 billion to $125 billion.This ________ relationship represents the ________ relationship between GDP and the price level.

• A)negative; short-run
• B)positive; short-run
• C)negative; long-run
• D)positive; long-run

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Definitions:

Market Power

The ability of a company or entity to influence the price or availability of goods and services in a market.

Monopoly

A market in which there is a single seller or a very limited number of sellers.

Marketing Territories

Defined geographic or demographic areas assigned to marketers or sales teams to manage and promote products or services within.

Marketing Costs

The expenses associated with promoting and selling products or services, including advertising, market research, and distribution.