Suppose GDP Is Currently at the Full Employment Level

question 16

Multiple Choice

Suppose GDP is currently at the full employment level. If aggregate demand falls, this will most likely lead to:

• A) inflation.
• B) an increase in output.
• C) no change in output.
• D) unemployment.

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Definitions:

Current

The flow of electric charge through a conductor or the flow of water in a stream or ocean.

Russian

Pertaining to Russia, its people, culture, or language, which is the most widely spoken of the Slavic languages.

Taller

Adjective describing something or someone of greater height in comparison to others or a previous state.

Couple

A couple refers to two persons or things closely associated with each other, often used to describe a romantic partnership.