Assume That the Economy Is at Full Employment

question 15

Essay

Assume that the economy is at full employment.For each of the following events determine whether there will be an output gap.If yes,what type?
a)Increase in aggregate demand.
b)Increase in aggregate supply.
c)Increase in long-run aggregate supply.
d)Decrease in long-run aggregate supply.

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Definitions:

Optimism

The inclination to look at the more favorable side of events or conditions and to expect the most favorable outcome.

Positive Psychological Attribute

Characteristics or traits of an individual that are beneficial for their mental health and well-being, such as optimism, resilience, and self-efficacy.

Relational Transparency

A characteristic of authentic leadership involving leaders openly sharing their true thoughts and feelings with followers.

Staff Meeting

A scheduled gathering of employees led by a manager or leader to discuss team objectives, projects, and address any workplace issues.