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.
Correct Answer:
Verified
Q138: If a country is trying to recover
Q139: Q140: A tax increase Q141: If investment spending increases by $1 million,then Q142: A change in any of the following Q144: If real GDP is greater than potential Q145: According to the AS-AD model, Q146: In its macroeconomic equilibrium,the economy can be Q147: If the economy is at macroeconomic equilibrium,then Q148: When the price level rises there is
A)decreases aggregate demand and the
A)the aggregate quantity
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