When Output Exceeds Its Full-Employment Level

question 15

Multiple Choice

When output exceeds its full-employment level

• A) the short-run aggregate supply curve shifts to the left.
• B) wages fall.
• C) the short-run aggregate supply curve shifts to the right.
• D) aggregate supply exceeds aggregate demand.

---

Definitions:

Caveat Emptor

A legal principle meaning "let the buyer beware," indicating that the buyer assumes the risk about the quality and condition of the product.

Legal Concept

A legal concept is a principle or idea in the field of law, which forms the basis for rules and actions within legal systems.

American Business Culture

Refers to the customs, behaviors, and values that the business community in the United States follows, emphasizing individualism, competition, and a market-driven economy.

Intellectual Property

Legal rights assigned to inventions, designs, artistic works, and symbols, protecting them from unauthorized use.