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Figure 8-5 Panel (A) Shows an Economy's Aggregate Production

Question 70

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Figure 8-5 Figure 8-5   Panel (a)  shows an economy's aggregate production function, Panel (b)  shows the labor market and Panel (c)  shows the economy's long-run aggregate supply curve. -Refer to Figure 8-5. In Panel (c) , the position of the long-run aggregate supply curve is determined by A)  the economy's potential output and its aggregate production function. B)  the economy's potential output and the demand and supply curves for labor. C)  the price level and potential output. D)  the price level and the demand and supply curves for labor. Panel (a) shows an economy's aggregate production function, Panel (b) shows the labor market and Panel (c) shows the economy's long-run aggregate supply curve.
-Refer to Figure 8-5. In Panel (c) , the position of the long-run aggregate supply curve is determined by


A) the economy's potential output and its aggregate production function.
B) the economy's potential output and the demand and supply curves for labor.
C) the price level and potential output.
D) the price level and the demand and supply curves for labor.

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