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

question 91

Multiple Choice

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

• A)Increased unemployment results.
• B)Any GDP gap disappears.
• C)Inventory levels are less than desired until a new equilibrium is reached.
• D)Changes in consumption spending have no impact on GDP.

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Definitions:

Income Distribution

The way in which total income is shared among the population or different groups within society.

Lowest Quintile

The segment of a population that falls into the bottom 20% based on income or another measurable characteristic.

Income Distribution

The way in which total income is shared among the population or different segments of an economy.

Lorenz Curve

A graphical representation used in economics to show the distribution of income or wealth within a society, illustrating levels of inequality.