The Amount of Additional Aggregate Demand Needed to Achieve Full

question 49

Multiple Choice

The amount of additional aggregate demand needed to achieve full employment after allowing for price level changes is

• A)The AD shortfall.
• B)The AD excess.
• C)The recessionary GDP gap.
• D)The inflationary GDP gap.

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Definitions:

Workforce

The total number of people employed or seeking employment in a country or specific sector.

Service Sector

The segment of the economy that provides intangible goods and services, such as healthcare, education, and financial services.

Trading Nation

A country whose economy is highly engaged in international trade, evidenced by a high ratio of exports and imports to its gross domestic product.

Trade Deficit

A situation where a country's imports of goods and services exceed its exports, leading to a net outflow of domestic currency to foreign markets.