When Potential GDP Increases

question 36

Multiple Choice

When potential GDP increases,

• A)there is neither a movement along nor a shift in the AS curve.
• B)there is a movement down along the AS curve.
• C)the AS curve shifts rightward.
• D)the AS curve shifts leftward.
• E)there is a movement up along the AS curve.

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Definitions:

Set Notation

A method for specifying a set or collection of objects or numbers using brackets and symbols.

Absolute Value Inequality

An inequality that involves the absolute value of a variable expression, used to describe a range of solutions.

Separate Inequalities

Involves dealing with two or more inequalities independently or in relation to each other.

Absolute Value Inequality

An inequality involving absolute values, which constrains the distance of a variable from zero on the real number line within certain bounds.