If Potential GDP Is Equal to $1500 Billion,what Does the Long-Run

question 63

Multiple Choice

If potential GDP is equal to $1500 billion,what does the long-run aggregate supply curve look like?

• A) It is a horizontal line at $1500 billion of GDP.
• B) It is a vertical line at a level of GDP below $1500 billion.
• C) It is a vertical line at $1500 billion of GDP.
• D) It is a vertical line at a level of GDP above $1500 billion.

---

Definitions:

Gross Domestic Product

The total market value of all final goods and services produced within a country in a given period.

Money Supply

The aggregate quantity of all forms of money, including cash and bank deposits, circulating within an economy.

Interest Rates

The cost of borrowing money or the return on investment, typically expressed as a percentage.

Aggregate Demand

The full scope of demand for products and services in an economy, gauged at a specified price level across a specific duration.