The Line Showing Potential GDP Is a Vertical Straight Line

question 33

Multiple Choice

The line showing potential GDP is a vertical straight line because

• A) economists are unsure about how to determine potential GDP.
• B) it represents the minimum level of real GDP in a recession.
• C) when nothing else changes, a higher price level has no effect on real GDP.
• D) there is only one level of full employment at any point in time.
• E) the aggregate supply curve is upward sloping.

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Definitions:

PPOs

Preferred Provider Organizations; a type of health insurance plan that offers members a discount on healthcare services if they use providers in the plan’s network.

Older Workers Benefit Protection Act

A U.S. federal law that provides older workers with protection against age discrimination in benefits and employment practices.

Early-Retirement Waivers

Early-retirement waivers are agreements that allow employees to retire before the traditional retirement age, often with specific benefits or conditions.

Age Discrimination in Employment Act

A U.S. federal law designed to protect workers 40 years of age and older from discrimination based on age.