An Economy Is at a Full-Employment Equilibrium,and Then the Aggregate

question 61

Multiple Choice

An economy is at a full-employment equilibrium,and then the aggregate demand curve shifts leftward.As a result,the price level ________ and real GDP ________.

• A)rises;increases
• B)rises;decreases
• C)falls;increases
• D)falls;decreases
• E)falls;does not change

---

Definitions:

Direct Expense

Expenses that can be directly tied to the production or sale of specific goods or services.

Traceable

Capable of being traced or tracked to a specific source or activity.

Department

A division within a business or organization tasked with particular functions or responsibilities.

Indirect Expenses

Costs that are not directly tied to specific cost objects like products, projects, or departments.