If the economy is in the vertical portion of the AS curve,what will be the effect on an increase in the price level on the level of employment?

A) There will be substantial increase in employment
B) There will be a less than proportional increase in employment
C) There will be no change in employment
D) Cannot be predicted from the information given

Employment Level

Refers to the total number of people currently employed in the economy, indicative of its health and labor market status.

Price Level

An index that measures the average prices of goods and services in an economy at a given time.

AS Curve

The Aggregate Supply curve, depicting the total supply of goods and services that firms in an economy will produce at different price levels.