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If Full-Employment GDP Is Equal to $1

Question 170

Multiple Choice

If full-employment GDP is equal to $1.9 trillion and the current price level is 130, what does the long-run aggregate supply curve look like?


A) It is a horizontal line at 130 of real GDP.
B) It is a vertical line at a level of real GDP below $1.9 trillion.
C) It is a vertical line at $1.9 trillion of real GDP.
D) It is a vertical line at a price level of 130.
E) It is a horizontal line at a price level of 130.

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