Exhibit 14-6 Aggregate Supply Curve

question 75

Multiple Choice

Exhibit 14-6 Aggregate supply curve

-In Exhibit 14-6,the aggregate supply curve becomes vertical at GDP = $1,200 because:

• A) there are no more workers available at any wage rate to increase real GDP.
• B) the price level remains constant.
• C) the only workers available would demand higher wage rates.
• D) the economy is experiencing low employment and low production.
• E) the Treasury is no longer allowed to explain away the deficit with creative accounting