Solved

If the Quantity of Real GDP Demanded Is Greater Than

Question 158

Multiple Choice

If the quantity of real GDP demanded is greater than the quantity of real GDP supplied,then


A) aggregate demand changes to restore equilibrium.
B) the price level falls to restore the macroeconomic equilibrium.
C) the economy must be producing at potential GDP.
D) the price level falls and firms decrease production.
E) the price level rises and firms increase production.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q44: When cost-push inflation starts, real GDP _

Q46: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8401/.jpg" alt=" -In the figure

Q47: Initially, demand-pull inflation will<br>A) increase the price

Q56: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8401/.jpg" alt=" The table gives

Q72: Which of the following changes aggregate supply

Q155: A deep recession hits the world economy,and

Q157: When the domestic price level increases,exports decrease

Q159: An increase in the quantity of money

Q161: When potential GDP increases,the potential GDP line

Q162: When investment increases,the _ in aggregate demand