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Assuming Full Employment Is at the Intersection of AD3 with the Aggregate

Question 126

Multiple Choice

Assuming full employment is at the intersection of AD<sub>3</sub> with the aggregate supply curve for the economy depicted in Figure 8.7,the worst unemployment problem would exist when AD is located at A) AD<sub>1</sub>. B) AD<sub>2</sub>. C) AD<sub>3</sub>. D) AD<sub>5</sub>. Assuming full employment is at the intersection of AD3 with the aggregate supply curve for the economy depicted in Figure 8.7,the worst unemployment problem would exist when AD is located at


A) AD1.
B) AD2.
C) AD3.
D) AD5.

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