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Assuming an Upward-Sloping AS Curve,if an Economy Is at Full

Question 91

Multiple Choice

Assuming an upward-sloping AS curve,if an economy is at full employment and consumption spending decreases while all other levels of spending remaining constant,then


A) Increased unemployment results.
B) Any GDP gap disappears.
C) Inventory levels are less than desired until a new equilibrium is reached.
D) Changes in consumption spending have no impact on GDP.

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