Consider an Economy Starting from a Position of Full Employment

question 25

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

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Definitions:

Asynchronous Communication

Communication where exchange of information does not occur in real-time, allowing participants to respond at their own convenience.

Electronic Mail

A technique for sending messages to others using digital devices, often referred to as email.

Service Representative

An individual who represents a company or service, providing assistance, information, and support to customers or clients.

Vendor

A third-party supplier or service provider that sells products or services to organizations or individuals.