If Full-Employment GDP Is Equal to $4

question 48

Multiple Choice

If full-employment GDP is equal to $4.2 trillion,what does the long-run aggregate supply curve look like?

• A)It is a horizontal line at $4.2 trillion of GDP.
• B)It is a vertical line at a level of GDP below $4.2 trillion.
• C)It is a vertical line at $4.2 trillion of GDP.
• D)It is a vertical line at a level of GDP above $4.2 trillion.

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Definitions:

Homelessness

The condition of people without a permanent dwelling, such as a house or apartment, often unable to acquire and maintain regular, safe, and adequate housing.

Elastic Demand

A situation where the quantity demanded of a good or service significantly changes as a result of a change in price.

Elastic Supply

Refers to a situation where the quantity of a good supplied by producers changes significantly in response to a small change in its price.

Inelastic Demand

A market situation where the demand for a product does not significantly change in response to price changes.