The level of real GDP the economy produces at full employment is called

If the price of a good rises, then moving along a demand curve the percentage change in the quantity demanded will be

A) positive. B) negative. C) zero. D) either positive, negative, or zero depending on how the demand curve shifted. E) undefined.

In the aggregate demand–aggregate supply model, which of these changes is most likely when the cost of production increases in the long run? a. A leftward shift of the short-run aggregate supply curve b. A leftward shift of the short-run aggregate demand curve c. A rightward shift of the short-run aggregate supply curve d. An increase in the potential output level increases

e. A decrease in the actual price level decreases.