Exhibit 14-6 Aggregate Supply Curve

question 96

Multiple Choice

Exhibit 14-6 Aggregate supply curve

In Exhibit 14-6, the economy's employment potential is fully exhausted at:

• A) GDP = $1,000 billion.
• B) GDP = $1,100 billion.
• C) GDP = $1,200 billion.
• D) the employment potential is never fully exhausted.

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Definitions:

Scientific Theories

Well-substantiated explanations of the natural world that are based on a body of evidence and can make predictions about natural phenomena.

Abnormal Psychology

A branch of psychology that studies unusual patterns of behavior, emotion, and thought, which may or may not be understood as precipitating a mental disorder.

Parsimonious

Refers to extreme unwillingness to spend money or use resources.

Enduring Truth

A concept or fact that remains valid and reliable over time.