Assuming an Upward-Sloping AS Curve,if an Economy Is at Full

question 54

Multiple Choice

Assuming an upward-sloping AS curve,if an economy is at full employment and consumption spending decreases while all other levels of spending remaining constant,then

• A)Increased unemployment results.
• B)Any GDP gap disappears.
• C)Inventory levels are less than desired until a new equilibrium is reached.
• D)Changes in consumption spending have no impact on GDP.

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Definitions:

Stocks

Financial instruments that represent an ownership share in a company, granting the holder a claim on part of the company's assets and profits.

Status Groups

Subsets within a society distinguished by shared characteristics such as occupation, lifestyle, or prestige, often influencing social stratification.

Weber

Max Weber, a German sociologist, who contributed significantly to the development of sociology, especially in the areas of bureaucracy, social stratification, and the study of religion.

Social Status

refers to the position or rank of a person or group within the social hierarchy, determined by factors such as wealth, occupation, education, and family background.