Suppose at a particular level of real gross domestic product (GDP), there are no unintended inventory adjustments. In this context, which of the following is true?
a. Real GDP is less than the equilibrium level of real GDP demanded.
b. Real GDP is greater than the equilibrium level of real GDP demanded.
c. Real GDP equals the equilibrium level of real GDP demanded
d. At equilibrium real GDP, there is no inflation.
e. At equilibrium real GDP, there is no saving.
c
You might also like to view...
How did states respond to the decline in their economies after the Great Depression?
a. by getting consumers to buy domestically produced goods b. by breaking treaties and discontinuing tariffs c. by enacting last-resort measures
The term "business fluctuations" refers to
A) changes in overall business activity, as evidenced by changes in national income, employment, and the price level. B) changes in the general price level from inflation to deflation, or vice versa. C) changes in the full employment level of economic activity. D) changes in the value of the dollar.