The line showing potential GDP is a vertical straight line because
A) it represents the minimum level of real GDP in a recession.
B) when nothing else changes, a higher price level has no effect on real GDP.
C) the aggregate supply curve is upward sloping.
D) economists are unsure about how to determine potential GDP.
E) there is only one level of full employment at any point in time.
E
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In the economic way of thinking, money
A) allows people to behave completely morally. B) allows people to behave completely competitively. C) allows people to make goods exchanges without concern for the true costs of their actions. D) allows people to make a wide range of negotiations.
Purchasing a season pass to the local symphony
A) is an example of first degree price discrimination. B) is an example of second degree price discrimination. C) is an example of third degree price discrimination. D) All of the above.