Multiple Choice
The line showing potential GDP is a vertical straight line because
A) economists are unsure about how to determine potential GDP.
B) it represents the minimum level of real GDP in a recession.
C) when nothing else changes, a higher price level has no effect on real GDP.
D) there is only one level of full employment at any point in time.
E) the aggregate supply curve is upward sloping.
Correct Answer:
Verified
Correct Answer:
Verified
Q28: If profits are high because the price
Q29: If the aggregate demand curve and the
Q30: An economy is at a full-employment equilibrium,
Q31: When the quantity of real GDP demanded
Q32: If the price level falls and the
Q34: If the price of widgets is $2
Q35: Over the business cycle, factors such as
Q36: According to the AS-AD model,<br>A) the AS
Q37: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8401/.jpg" alt=" -The aggregate demand
Q38: A rise in the price level<br>A) decreases