If Full-Employment GDP Is Equal to $1

question 170

Multiple Choice

If full-employment GDP is equal to $1.9 trillion and the current price level is 130, what does the long-run aggregate supply curve look like?

• A)It is a horizontal line at 130 of real GDP.
• B)It is a vertical line at a level of real GDP below $1.9 trillion.
• C)It is a vertical line at $1.9 trillion of real GDP.
• D)It is a vertical line at a price level of 130.
• E)It is a horizontal line at a price level of 130.

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Definitions:

Destination Contracts

Agreements in which the seller is responsible for delivering goods to a specific location, with the risk of loss transferring upon arrival.

Original

Pertaining to the first or earliest form of something, often indicating authenticity or uniqueness.

Origin Contract

A contractual agreement specifying the original terms and conditions set forth by the parties involved in a transaction or negotiation.

Risk of Loss

The potential that an investment's value may decrease or that a business may suffer losses.