Potential GDP
A) increases as the price level increases because firms supply more goods and services.
B) decreases as the price level increases because people demand fewer goods and services.
C) might either increase or decrease as the price level increases,depending on whether aggregate demand increases or decreases.
D) is independent of the price level.
E) never changes.
Correct Answer:
Verified
Q2: Moving along the AS curve,when the price
Q3: The _,the _ is the quantity of
Q4: The slope of the aggregate supply curve
Q5: _ increases the quantity of real GDP
Q6: Moving along the aggregate supply curve,when the
Q7: Which of the following is true?
A)Aggregate supply
Q8: Moving along the potential GDP line,when the
Q9: The line showing potential GDP is a
Q10: The slope of the aggregate supply curve
Q11: Over a business cycle,the quantities of capital,human
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