12.2 Equilibrium in Aggregate Demand and Supply Analysis

question 54

Multiple Choice

12.2 Equilibrium in Aggregate Demand and Supply Analysis
AD - AS Equilibrium
-On the graph above,consider a point A on the aggregate demand curve and above the aggregate supply curve.At this point,________.

• A)quantity demanded equals output,but the inflation rate will fall,so output will rise
• B)quantity demanded is greater than quantity supplied,so the inflation rate will rise
• C)output is greater than the quantity demanded,so output will fall
• D)the aggregate demand curve will shift to the right until quantity demanded is equal to quantity supplied
• E)none of the above

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Definitions:

Video Games

Video games are electronic games that involve interaction with a user interface or input device – such as a joystick, controller, keyboard, or motion sensing device – to generate visual feedback for a player.

Demographic Shift

A change in the statistical characteristics of a population over time, such as age, race, or gender distribution.

Young-Old

Healthy, vigorous, financially secure older adults (generally, those aged 65 to 75) who are well integrated into the lives of their families and communities.