Question

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according to keynesian model, when we are at full real output, which of the following will be a factor on the lras curve?


A. a change in technological changes

B. the average price level will change

C. the need for more skilled workers

D. the need for more unskilled workers

Answer 1

Answer:

When the economy reaches full real output, there is no spare capacity left and therefore as real output increases, the price level will increase. There are no workers left in the economy as full employment is reached.