The Long-Run Aggregate Supply Curve Is Vertical Because

question 69

Multiple Choice

The long-run aggregate supply curve is vertical because

• A) the economy has yet to use all its available resources.
• B) the economy has reached its potential real Gross Domestic Product (GDP) and is at full employment.
• C) the economy has contracted.
• D) the economy has large numbers of unemployed.

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Definitions:

Videoconferencing

A technology that allows people in different locations to hold face-to-face meetings without having to move to a single location.

Maternity Leave

A period of absence from work granted to a mother before and after the birth of her child.

Resources

Assets, materials, and other inputs required by organizations or individuals to produce goods or services.

Equipment

The necessary items for a particular purpose or task, typically involving machinery, tools, or devices required in a professional or recreational activity.