The table gives the aggregate demand and aggregate supply schedules for a nation.
-The table above gives data for the nation of Pearl, a small island in the South Pacific. The economy is at full employment when real GDP is
A) $22 billion.
B) $34 billion.
C) $25 billion.
D) $31 billion.
E) $28 billion.

Question

The table gives the aggregate demand and aggregate supply schedules for a nation.
-The table above gives data for the nation of Pearl, a small island in the South Pacific. The economy is at full employment when real GDP is
A) $22 billion. 
B) $34 billion. 
C) $25 billion. 
D) $31 billion. 
E) $28 billion.

Quizplus · Accepted Answer

Full employment refers to the level of GDP at which all available labor resources are being used in the most economically efficient way. Without the specific table data, it's not possible to determine the exact figures, but typically, the correct answer would be based on information indicating where the economy is neither expanding nor contracting too quickly, and where unemployment is at its natural rate. Given the choices, the selection of $25 billion suggests it is the level identified as representing full employment for the nation of Pearl based on the provided (but unseen) data.

The Table Gives the Aggregate Demand and Aggregate Supply Schedules