What Would Happen If Employment Is Continually Above or Below

question 30

Multiple Choice

What would happen if employment is continually above or below its full-employment level?

• A) the aggregate demand curve would shift to move the economy back to full employment.
• B) the economy's self-correcting mechanism would move the economy back to full employment.
• C) the aggregate supply curve would become horizontal.
• D) the aggregate supply curve would become steeper.
• E) the economy's self-correcting mechanism would break down.

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