-In the above figure, the economy will be at full employment if the price level
A) is below 100.
B) is above 110.
C) is 110.
D) All of the above are possible because the economy will be at full employment at any price level at, above, or below 110.

Question

-In the above figure, the economy will be at full employment if the price level
A) is below 100. 
B) is above 110. 
C) is 110. 
D) All of the above are possible because the economy will be at full employment at any price level at, above, or below 110.

Quizplus · Accepted Answer

The economy is at full employment when the price level is at 110, as this is typically where the aggregate supply and aggregate demand curves intersect at the full employment level of output.

-In the Above Figure, the Economy Will Be at Full