Because the Aggregate Supply Curve Rises More Steeply as the Economy

question 17

Multiple Choice

Because the aggregate supply curve rises more steeply as the economy approaches full employment,

• A)Inflation tends to accelerate.
• B)The recessionary GDP gap becomes larger.
• C)Aggregate demand shifts to the left.
• D)It becomes easier to reach full employment.

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Definitions:

Duty of Loyalty

An agent’s obligation to act in the interest of the principal.

Fifth Amendment

An amendment to the US Constitution that provides several rights to individuals, including protection against self-incrimination and double jeopardy.

Defective Corporation

A corporation about which an error or omission was made during its incorporation process.

Incorporator

An individual who applies for incorporation on behalf of a corporation.