-In the above figure, the economy will be at full employment if the price level
A) is 110.
B) is above 110.
C) is below 100.
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 110. 
B) is above 110. 
C) is below 100. 
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 110, as this is typically the equilibrium point where aggregate supply equals aggregate demand at full employment.

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