Consider the AD/AS Model After Factor Prices Have Fully Adjusted

question 56

Multiple Choice

Consider the AD/AS model after factor prices have fully adjusted to output gaps.A reduction in the level of potential output,with aggregate demand constant,will

• A)leave real output unaffected and increase the price level.
• B)decrease real output and decrease the price level.
• C)decrease real output and leave the price level unchanged.
• D)decrease real output and increase the price level.
• E)increase real output and decrease the price level.

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Definitions:

Disparate Treatment

A form of discrimination in which an individual is treated differently based on prohibited factors such as race, age, sex, religion, or national origin.

Discrimination

Unfair treatment of a person or group based on characteristics such as race, gender, age, or sex, rather than individual merit.

Legal Situations

Circumstances or cases that involve or are subject to laws, legal processes, or legal interpretations.

Disparate Impact

A phenomenon where a policy or practice appears neutral but disproportionately affects individuals of a certain group, often used in discussions of employment discrimination.