If the equilibrium price level is 135 but the actual price level is 120, then
A) firms decrease their production because they cannot sell the output they produce.
B) the quantity of real GDP demanded is less than the quantity of real GDP supplied.
C) the quantity of real GDP demanded is greater than the quantity of real GDP supplied.
D) aggregate demand will increase to restore equilibrium.
E) aggregate demand will decrease to restore equilibrium.
C
You might also like to view...
While waiting in line to buy two tacos at 80 cents each and a medium drink for 90 cents, Kayla notices that the restaurant has a value meal containing three tacos and a medium drink all for $3 . For Kayla, the marginal cost of the third taco would be
a. zero. b. 50 cents. c. 80 cents. d. $1.
Trade with any nation can be mutually beneficial
a. True b. False Indicate whether the statement is true or false