Consider an Economy Starting from a Position of Full Employment

question 113

Multiple Choice

Consider an economy starting from a position of full employment.Which one of the following occurs as a result of an advance in technology?

• A)Real GDP decreases in the short run.
• B)The price level falls.
• C)Factor prices rise in the long run, shifting the short- run aggregate supply curve leftward.
• D)An inflationary gap arises.
• E)The long- run aggregate supply curve shifts leftward to create the new long- run equilibrium.

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Definitions:

Sympathetic Nervous System

A part of the autonomic nervous system that prepares the body for rapid action in response to threats, often referred to as the "fight or flight" system.

Fight-Or-Flight

A physiological response to perceived harmful events, attacks, or threats to survival, preparing the body to either confront or flee from the danger.

Lymphocytes

A type of white blood cell that is an essential part of the immune system, playing a crucial role in combating infections.

T Lymphocytes

A type of white blood cell that plays a central role in the immune system, specifically in cell-mediated immunity.