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If Potential GDP Is Equal to $1 800 Billion, What

Question 24

Multiple Choice
If potential GDP is equal to $1 800 billion, what does the long-run aggregate supply curve look like?
A)It is a horizontal line at $1 800 billion of GDP.
B)It is a vertical line at $1 800 billion of GDP.
C)It is a vertical line at a level of GDP below $1 800 billion GDP.
D)It is a vertical line at a level of GDP above $1 800 billion.

If potential GDP is equal to $1 800 billion, what does the long-run aggregate supply curve look like?


A) It is a horizontal line at $1 800 billion of GDP.
B) It is a vertical line at $1 800 billion of GDP.
C) It is a vertical line at a level of GDP below $1 800 billion GDP.
D) It is a vertical line at a level of GDP above $1 800 billion.

Correct Answer:

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