When the Actual GDP Equals the Full-Employment Level of GDP

question 49

Multiple Choice

When the actual GDP equals the full-employment level of GDP, the

• A) economy is in long-run equilibrium.
• B) price level must be rising.
• C) expected inflation must be zero.
• D) aggregate supply curve is not constrained by the scarcity of resources.

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Definitions:

Self-Actualization

The humanistic process by which people fulfill their potential for goodness and growth.

Human Functioning

The range of human activities and capabilities, including physical, cognitive, emotional, and social aspects of life and well-being.

Humanists

Individuals who emphasize the value and goodness of human beings, preferring critical thinking and evidence over established doctrine or faith.

Cognitive-Behavioral

A treatment method that targets harmful behaviors and thought processes by combining cognitive and behavioral strategies.