Macroeconomic equilibrium in the economyMultiple choice question.occurs where the aggregate demand (AD) curve intersects the vertical aggregate supply curve (LAS)always occurs at the full-employment level of outputonly occurs at the full-employment level of output.may occur at any level of output

Multiple Choice QuestionMacroeconomic equilibrium occurs where the aggregate demand curve intersects the Blank______ aggregate supply curve.Multiple choice question.upward-slopingdownward-slopinglong-runvertical

The figure below depicts the multiplier model. In this instance, it shows a downward shift of the aggregate demand curve (AD), reducing the level of output from A to Z. Suppose that we begin again at Z and that there is no full-employment level of output. An increase in aggregate demand in these circumstances will most likely cause:    Select one correct answer Group of answer choicesA rise in the general level of prices.A fall in wages.A fall in employment.An increase in output Y.

Multiple Choice QuestionThe aggregate demand curve slopes downward because it reflects:Multiple choice question.a direct relationship between the price level and the amount of of real output demandedan inverse relationship between the price level and the amount of real output demanded

Which of the following is not true when the economy is on the vertical segment of the aggregate supply curve?Question 45Select one:a.all available labor resources are being used in the most efficient way possible.b.price levels (inflation) can rise without increases in real output in the economy.c.prices will increase without increases in the output level because the economy is producing at full capacity.d.substantial growth of real GDP can be produced without any increase in the price level (inflation).e.the economy is at full employment.

Short-run macroeconomic equilibrium occurs when:Question 3Answera.structural and frictional unemployment equal zero.b.the equilibrium lies on the long-run aggregate supply curve.c.aggregate demand and short-run aggregate supply intersect.d.A and B