The SAS curve and the LAS curve
A)intersect at potential GDP.
B)are perpendicular to one another at potential GDP.
C)are parallel at potential GDP.
D)None of the above answers is correct.

Question

Quizplus · Accepted Answer

The Short-Run Aggregate Supply (SAS) curve and the Long-Run Aggregate Supply (LAS) curve intersect at potential GDP, which represents the level of output an economy can produce at full employment.

The SAS Curve and the LAS Curve