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:

Transferred Property

Assets or rights that have been legally moved from one owner to another through a sale, gift, or inheritance.

Preexisting Debt

Financial obligations or liabilities that exist before a specified event or transaction, such as taking out a new loan.

Fraudulent Transfer

A transaction where a debtor intentionally transfers assets to avoid creditors' claims.

Prize Stallion

A highly valued male horse recognized for its pedigree, performance, or breeding capabilities.