Question

What happens to the ASF curve once it reaches the point of "Full Employment"?

विकल्प

• It falls downward toward the origin.

• It becomes a horizontal line.

• It becomes vertical (inelastic).

• It continues to rise at a 45° angle.

Answer 1

It becomes vertical (inelastic).

Explanation:

Once everyone is employed, no further increase in money receipts can increase employment, making the curve a straight vertical line.