Exhibit 14-1 Aggregate supply curve

-In Exhibit 14-1,there are plenty of idle resources and no upward pressure on prices in:
A) the segment labeled ab.
B) the segment labeled bc.
C) the segment labeled cd.
D) both segment bc and segment cd.
E) the entire curve.

Question

Exhibit 14-1 Aggregate supply curve
 
-In Exhibit 14-1,there are plenty of idle resources and no upward pressure on prices in:
A) the segment labeled ab. 
B) the segment labeled bc. 
C) the segment labeled cd. 
D) both segment bc and segment cd. 
E) the entire curve.

Quizplus · Accepted Answer

In the segment labeled ab, there are plenty of idle resources and no upward pressure on prices, indicating an economy operating below full capacity.

Exhibit 14-1 Aggregate Supply Curve