Assume the Equilibrium Level of Output Is Less Than Full

question 57

Multiple Choice

Assume the equilibrium level of output is less than full employment.To achieve full-employment equilibrium,the aggregate demand curve must shift to the right by

• A)The amount of the recessionary GDP gap.
• B)An amount less than the recessionary GDP gap because the spending increase causes the multiplier process to occur.
• C)An amount greater than the recessionary GDP gap because the spending increase raises the price level.
• D)An amount less than the recessionary GDP gap because the spending increase raises output and prices.

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Definitions:

Feminization of Love

The concept that societal norms and expectations often frame love as an emotion more naturally expressed or valued by women.

Breadwinner Fallacy

The incorrect assumption that the person who earns the most money in the household should also bear the greatest responsibility for financial decisions or the welfare of the family.

Instrumental Dilemma

A situation where individuals face a choice between actions or tools that can lead to different outcomes, often in the context of achieving a specific goal or solving a problem.

Sexual Consummation

The act of completing a marriage through sexual intercourse.