The aggregate supply curve that defines the level of full employment or potential output based on a given amount of resources, efficiency, and technology in the economy is called:
A) short-aggregate supply curve.
B) long-run aggregate supply curve.
C) intermediate aggregate supply curve.
D) none of the above.
B
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In the figure above, the economy is at an equilibrium with real GDP of $16 trillion and a price level of 110. As the economy moves toward its ultimate equilibrium, the ________ curve shifts ________
A) aggregate supply; leftward B) aggregate supply; rightward C) aggregate demand; rightward D) aggregate demand; leftward E) potential GDP; leftward
When Susan makes the statement, "The government should spend less money to take care of national parks," she is
A) making a normative statement. B) making a positive statement. C) testing an economic model. D) not dealing with scarcity.
There are frequently market solutions that the government can use to deal with externalities
a. True b. False Indicate whether the statement is true or false
Explain how the demand for labor is determined