If Potential GDP Is Equal to $600 Billion,what Does the Long-Run

question 41

Multiple Choice

If potential GDP is equal to $600 billion,what does the long-run aggregate supply curve look like?

• A)It is a horizontal line at $600 billion of GDP.
• B)It is a vertical line at a level of GDP below $600 billion.
• C)It is a vertical line at $600 billion of GDP.
• D)It is a vertical line at a level of GDP above $600 billion.

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Definitions:

Financial Account

A component of the balance of payments that records transactions involving financial assets between residents and non-residents.

Assets

Assets of economic worth owned or managed by a person, company, or nation, anticipated to bring future advantages.

Statistical Discrepancy

The difference between two sets of numbers or data points that are expected to be in agreement but are not, due to errors or variances.

Balance of Payments

A financial statement that summarizes a country's transactions with the rest of the world, including trade, investments, and monetary movements, over a specific time period.