If the Economy Is Producing at Potential GDP

question 75

Multiple Choice

If the economy is producing at potential GDP

• A)unemployment is at its natural rate.
• B)the Phillips curve must be positively sloped.
• C)the short-run aggregate supply curve must be vertical.
• D)inflation in the economy is at its natural rate.

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Definitions:

Trendline

A graphical representation of trends in data series, used in charts and graphs to predict future values based on past performance.

Data Points

Individual units of information or measurements that are collected and analyzed as part of a larger dataset.

Minor Gridlines

Thin lines used within charts or graphs to improve readability, typically placed behind data points.

Value Axis

The vertical or horizontal axis in a chart or graph that represents the magnitude of values, often displaying numbers.