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    Exam 18: Extending the Analysis of Aggregate Supply
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    Refer to the Graph Above
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Refer to the Graph Above

Question 41

Question 41

Multiple Choice

  Refer to the graph above. If Q<sub>f</sub> is potential GDP, wages and prices are flexible, then the long-run aggregate supply curve will be: A)  AS<sub>2</sub> B)  AS<sub>1</sub> C)  A vertical line at Q<sub>f</sub> D)  A vertical line at Q<sub>1</sub> Refer to the graph above. If Qf is potential GDP, wages and prices are flexible, then the long-run aggregate supply curve will be:


A) AS2
B) AS1
C) A vertical line at Qf
D) A vertical line at Q1

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