Suppose the Economy Is Self-Regulating,the Price Level Is 120,the Quantity

question 5

Multiple Choice

Suppose the economy is self-regulating,the price level is 120,the quantity demanded of Real GDP and the quantity supplied of Real GDP in the short run both equal $5.7 trillion,and the quantity supplied of Real GDP in the long run is $5.2 trillion. Given all of this information,we can conclude that the economy ____________ in short run equilibrium,and that the price level in long run equilibrium will be _____________ than 120.

• A) is not; less
• B) is; more
• C) is; less
• D) is not; more

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Definitions:

Supply-Chain Performance

A measure of how well a supply chain fulfills customer demands and manages resources efficiently.

Sales Forecasting

The process of estimating future sales revenue over a specific period, based on past sales data, trends, and market analysis.

Crossover Point

The point at which two or more options have equal costs or benefits, often used in decision-making processes.

Variable Costs

Costs that vary directly with the level of production or service activity, such as materials and labor.