The line showing potential GDP is a vertical straight line because
A) economists are unsure about how to determine potential GDP.
B) it represents the minimum level of real GDP in a recession.
C) when nothing else changes, a higher price level has no effect on real GDP.
D) there is only one level of full employment at any point in time.
E) the aggregate supply curve is upward sloping.

Question

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The Answer of The line showing potential GDP is a vertical straight line because
A) economists are unsure about how to determine potential GDP.
B) it represents the minimum level of real GDP in a recession.
C) when nothing else changes, a higher price level has no effect on real GDP.
D) there is only one level of full employment at any point in time.
E) the aggregate supply curve is upward sloping.

The Line Showing Potential GDP Is a Vertical Straight Line