If Full Employment Is Associated with an Output That Is

question 13

Multiple Choice

If full employment is associated with an output that is greater than the current macro equilibrium,which of the following best describes the impact of a rightward shift of the aggregate supply curve,ceteris paribus?

• A)A higher price level and a higher level of output.
• B)A higher price level and a lower level of output.
• C)A recession or depression.
• D)A lower price level and a higher level of output.

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Definitions:

Option Clearing Corporation

The organization responsible for ensuring the proper settlement of options contracts and mitigating counterparty risk in the options market.

Post Margin

The amount of collateral a participant must deposit with a clearinghouse to cover potential future losses on positions.

Purchased

The act of acquiring ownership of an asset in exchange for payment.

Digital Option

A type of option that pays either a fixed amount of cash or nothing at all, depending on whether a certain condition is met at expiration.