If the quantity of real GDP demanded is less than the quantity of real GDP supplied, then
A) aggregate demand changes to restore the equilibrium.
B) the economy must be producing at potential GDP.
C) the price level falls and firms increase production.
D) the price level rises to restore the macroeconomic equilibrium
E) the price level falls and firms decrease production.
Correct Answer:
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Q12: Q13: The aggregate demand curve illustrates the relationship Q14: A rise in the price level--------------------the buying Q15: A combination of declining real GDP and Q16: An increase in--------------------increases potential GDP and-------------------- Q18: Cost-push inflation can start with Q19: Because there is a-------------------- relationship between the Q20: An increase in the quantity of money--------------------aggregate Q21: A fall in the real wage rate Q22: A fall in the price level brings
A)an increase in
A)does
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