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AP® Macroeconomics

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Moderate

AS Beyond Full Employment

APMACR-EET5KO

In the Long Run, an economy will not stay working beyond full employment output levels because

A

foreigners will buy up the productive companies.

B

Aggregate Demand cannot keep up with Aggregate Supply for that long; people run out of money.

C

consumers will run out of money in the long run.

D

higher wages cause a Short Run Aggregate Supply shift to the left.

E

people get diminishing returns on the items purchased in the product market.