A vertical AS curve means that the level of aggregate supply (or potential GDP) will determine the real GDP of the economy, regardless of the level of:
a. cyclical unemployment
b. real unemployment
c. aggregate demand
d. inflationary pressures
c. aggregate demand
You might also like to view...
What is the most common measure of a firm's capital stock, and why is it not the most important to focus on?
What will be an ideal response?
A government tax rebate of $1,000 would ________ your disposable income by ________
A) decrease; $1,000 B) increase; less than $1,000 C) decrease; less than $1,000 D) increase; $1,000
Using productive resources to make capital goods requires that we
A. forgo some level of current consumption. B. get government approval of our plan to make capital goods. C. prove that the existence of the capital goods will not cause any environmental damage. D. get everyone to agree on the best use of those resources.
Refer to the information provided in Figure 7.10 below to answer the question(s) that follow. 
Figure 7.10Refer to Figure 7.10. At Point A the absolute value of the slope of the q1 = 100 isoquant is
A. less than 2. B. exactly equal to 2. C. greater than 2. D. indeterminate from this information.