Suppose the Full Employment Level of Real Output (Q) for a Hypothetical

question 141

Multiple Choice

Suppose the full employment level of real output (Q) for a hypothetical economy is $500, the price level (P) initially is 100, and prices and wages are flexible both upward and downward. Refer to the
Accompanying short-run aggregate supply schedules. If the price level unexpectedly declines from
100 to 75, the level of real output in the short run will

• A) rise from $500 to $560.
• B) fall from $500 to $440.
• C) fall from $560 to $500.
• D) rise from $440 to $500.

---

Definitions:

Abolitionists

Individuals who advocated for and worked towards the end of slavery.

American Revolution

A period of political and military conflict (1775-1783) wherein thirteen of Britain’s North American colonies successfully established independence.

Harriet Martineau

An English social theorist and Whig writer, often cited as the first female sociologist, who studied and wrote extensively on social and political issues of her time.

Ex-Slaves

Ex-slaves, also known as freedmen, were individuals who had been enslaved and were released from slavery, facing numerous challenges in integrating into society and securing economic and civil rights post-emancipation.