If Potential GDP Is Equal to $600 Billion,what Does the Long-Run

question 41

Multiple Choice

If potential GDP is equal to $600 billion,what does the long-run aggregate supply curve look like?

• A)It is a horizontal line at $600 billion of GDP.
• B)It is a vertical line at a level of GDP below $600 billion.
• C)It is a vertical line at $600 billion of GDP.
• D)It is a vertical line at a level of GDP above $600 billion.

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Definitions:

Common Stock Account

An equity account that represents the ownership interest of the shareholders in a company.

Common Stock Dividend Distributable

The amount of dividends declared by a company but not yet paid to common stockholders.

Equity Account

An account representing the owner's interest or stake in a company.

Corporation

A legal entity formed by individuals, stockholders, or shareholders, with its own rights and liabilities separate from those of its members.