Exhibit 10-6 Aggregate supply curve

In Exhibit 10-6, where the GDP = $1,200 billion,
A) everyone willing to work at the current wage is employed.
B) the economy has reached full employment.
C) GDP can increase to $1,100 billion without triggering an increase in the price level.
D) no further increases in the price level can generate more real GDP.

Question

Exhibit 10-6 Aggregate supply curve

In Exhibit 10-6, where the GDP = $1,200 billion,
A) everyone willing to work at the current wage is employed. 
B) the economy has reached full employment. 
C) GDP can increase to $1,100 billion without triggering an increase in the price level. 
D) no further increases in the price level can generate more real GDP.

Quizplus · Accepted Answer

The Answer of Exhibit 10-6 Aggregate supply curve

In Exhibit 10-6, where the GDP = $1,200 billion,
A) everyone willing to work at the current wage is employed. 
B) the economy has reached full employment. 
C) GDP can increase to $1,100 billion without triggering an increase in the price level. 
D) no further increases in the price level can generate more real GDP.

Exhibit 10-6 Aggregate Supply Curve