Exhibit 14A-2  Macro AD-AS Model in Exhibit 14A-2, the Long-Run

question 82

Multiple Choice

Exhibit 14A-2  Macro AD-AS Model In Exhibit 14A-2, the long-run aggregate supply curve represents:

• A) potential real GDP output for this economy.
• B) that the economy is experiencing zero inflation.
• C) that the economy is experiencing a recessionary gap.
• D) the level of real GDP where the unemployment rate is zero.

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Definitions:

Society's Benefits

The advantages or positive outcomes that accrue to the general public or community from certain actions, policies, or programs.

Rule Utilitarianism

A theory in ethics which suggests that the correctness of an action depends on whether it conforms to a set of rules that, if universally followed, would lead to the greatest good for the greatest number.

Storm Warning

A weather alert indicating that a storm, typically severe, is imminent or occurring within a specified area.

Critically Thinking

The process of actively analyzing, assessing, synthesizing, and evaluating information gathered from observation, experience, or communication.