The SAS Curve and the LAS Curve

question 265

Multiple Choice

The SAS curve and the LAS curve

• A) are perpendicular to one another at potential GDP.
• B) are parallel at potential GDP.
• C) intersect at potential GDP.
• D) None of the above answers is correct.

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Definitions:

Korean War

A conflict between North Korea, supported by China and the Soviet Union, and South Korea, supported by the United Nations, primarily the United States, which lasted from 1950 to 1953.

Inflation

The uptick in the overall pricing scheme for goods and services, leading to a diminution of acquisition power.

Agricultural Sector

The part of an economy concerned with the production, processing, and distribution of agricultural products.

Economic Development

The process by which a nation improves the economic, political, and social well-being of its people, often through increased industrial activity and employment opportunities.