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AP® Macroeconomics

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Full Employment and AD/AS model

APMACR-N1JIEY

On a standard Macroeconomics AD/AS graph Full employment occurs

A

at a 2% price level.

B

wherever Aggregate Demand intersects with SRAS.

C

where Short and Long-Run Aggregate Supply meet. If AD crosses here then the economy is at full employment.

D

whenever Aggregate Demand intersects with the Keynesian range of the Aggregate Supply curve.

E

anywhere the price level stays below 3%.