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:

Ranch

A large farm, especially in the Western US, where cattle, horses, or other livestock are raised.

Tangible Personal Property

Items of property that can be physically touched and moved, such as furniture, vehicles, and electronics.

Vacant Sale

The sale of a property that is empty or not currently occupied by tenants or owners.

Merchantable Quality

Freedom of goods from defects that, if known, would impact the price.