Assuming an Upward-Sloping AS Curve,if an Economy Is at Full

question 136

Multiple Choice

Assuming an upward-sloping AS curve,if an economy is at full employment and investment spending decreases while all other levels of spending remaining constant,then

• A)A GDP gap emerges.
• B)The price level increases.
• C)Output increases.
• D)The unemployment rate falls.

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Definitions:

Collection Fee

A charge assessed for the service of collecting delinquent payments on loans or bills.

Credit Card Sales

Credit card sales refer to transactions in which goods or services are purchased by customers using credit cards as the method of payment.

Cash Equivalents

Short-term, highly liquid investments with original maturities of three months or less, easily convertible into a known amount of cash.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for financing inventory and accounts receivable.