Why Is the Economy at Full Employment in the Long

question 85

Multiple Choice

Why is the economy at full employment in the long run?

• A) Only wages have the ability to adjust.
• B) Only price can adjust.
• C) Prices don't adjust.
• D) Wages and the price level eventually adjust to develop full employment.
• E) Wages don't adjust.

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Definitions:

Tension

A mental or emotional strain caused by the conflict between opposing forces, thoughts, or feelings.

Homeostatic Approach

A concept in psychology that refers to the process by which organisms maintain a stable internal environment despite external changes, often applied to emotional regulation.

Balance and Equilibrium

The state of psychological stability achieved when tensions or conflicts are managed and personal needs are adequately met.

American Psychoanalytic Association

A professional organization dedicated to the study and practice of psychoanalysis in the United States.