The AD Shortfall Is the Amount of Additional Aggregate Demand

question 63

Multiple Choice

The AD shortfall is the amount of additional aggregate demand needed to achieve full employment after allowing for

• A)Multiplier effects.
• B)Price level changes.
• C)Feedback effects.
• D)Fiscal stimulus.

---

Definitions:

Relative Deprivation

Relative deprivation refers to the experience of feeling deprived of something to which one believes they are entitled, often in comparison to others.

Psychological Contract

An unwritten agreement that reflects the mutual beliefs, perceptions, and informal obligations between an employer and employee.

Job Satisfaction

The level of contentment employees feel towards their job, considering aspects such as work environment, tasks, and compensation.

Employee Grievances

Formal complaints or concerns raised by employees regarding workplace conditions, treatment by managers, or issues related to employment terms.