If the Economy Is at Full Employment and the LAS

question 178

Multiple Choice

If the economy is at full employment and the LAS curve shifts to the right because of,say,an increase in labour force participation rate,then which of the following will result?

• A)The AS curve will also shift to the right and full employment will be maintained.
• B)The AS curve will also shift to the right but a recessionary gap will result.
• C)The AS curve will shift to the left and full employment will be maintained.
• D)The AS curve will not be affected.
• E)The AS curve may or may not shift depending on what happens to the wage rate.

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Definitions:

Motor Vehicle Accident

An event involving a collision between one or more vehicles, potentially leading to property damage, injury, or death.

Hearing Loss

A reduction in the ability to perceive sounds compared to what is considered normal, which can range from mild to profound impairment.

Conduction Deafness

A form of hearing loss that occurs due to problems in transferring sound waves from the outer ear to the inner ear.

Auditory Nervous System

The part of the nervous system responsible for hearing; it includes both the peripheral components, like the ear, and the central components, like the brain's auditory pathways.