Exhibit 10-6 Aggregate Supply Curve in Exhibit 10-6, the Aggregate

Multiple Choice

Exhibit 10-6 Aggregate supply curve In Exhibit 10-6, the aggregate supply curve becomes vertical at GDP = $1,200 because:

A) there are no more workers available at any wage rate to increase real GDP.
B) the price level remains constant.
C) the only workers available would demand higher wage rates.
D) the economy is experiencing low employment and low production.
E) the Treasury is no longer allowed to explain away the deficit with creative accounting