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What Would Happen If Employment Is Continually Above or Below

Question 30

Multiple Choice

What would happen if employment is continually above or below its full-employment level?


A) the aggregate demand curve would shift to move the economy back to full employment.
B) the economy's self-correcting mechanism would move the economy back to full employment.
C) the aggregate supply curve would become horizontal.
D) the aggregate supply curve would become steeper.
E) the economy's self-correcting mechanism would break down.

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