Exhibit 14A-2  Macro AD-AS Model in Exhibit 14A-2, the Long-Run

Multiple Choice

Exhibit 14A-2  Macro AD-AS Model In Exhibit 14A-2, the long-run aggregate supply curve represents:

A) potential real GDP output for this economy.
B) that the economy is experiencing zero inflation.
C) that the economy is experiencing a recessionary gap.
D) the level of real GDP where the unemployment rate is zero.