If the Economy Is at Full Employment and Both the AS Curve

question 47

Multiple Choice

If the economy is at full employment and both the AS curve and the LAS curve shift right,why might the economy experience a recessionary gap?

• A)Because prices are inflexible downwards.
• B)Because the LAS curve will always shift more than the AS curve.
• C)Because a new equilibrium price level may be established that is above the price level needed to maintain full employment
• D)Because a new equilibrium price level may be established that is below the price level needed to maintain full employment
• E)Because there is no reason to assume that the aggregate demand curve will shift.

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Definitions:

Ethnomethodological

Pertaining to ethnomethodology, a sociological perspective focused on the way people make sense of their everyday lives through the use of common-sense knowledge and procedures.

Doing Gender

The idea that gender is a socially constructed role performed by individuals, highlighting how actions and behaviors contribute to the perception of oneself as masculine or feminine.

Transgender

Referring to a person whose gender identity does not correspond with the sex they were assigned at birth.

Transsexual

A term describing a person whose gender identity differs from the sex they were assigned at birth, often pursuing medical assistance to transition.