When the AS Curve Is Vertical at the Full-Employment GDP

question 20

Multiple Choice

When the AS curve is vertical at the full-employment GDP, the effect/s of a change in AD:

• A) is a change in the price level.
• B) are changes in the demand and the price levels.
• C) is a change in the output level.
• D) is a change in the quality.

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Definitions:

Self-Actualization

The realization or fulfillment of one's talents and potentialities, often considered as a drive or need present in everyone.

Inborn Potential

The inherent capacity or natural ability present from birth that can develop into talents or skills with encouragement and practice.

Abraham Maslow

An American psychologist known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.

Self-Actualization

The realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone, the highest level in Maslow's hierarchy of needs.