What would happen if employment is continually above or below its full-employment level?
a. the aggregate demand curve would shift to move the economy back to full employment.
b. the economy's self-correcting mechanism would move the economy back to full employment.
c. the aggregate supply curve would become horizontal.
d. the aggregate supply curve would become steeper.
e. the economy's self-correcting mechanism would break down.
B
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In perfect competition
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