If the National Output Cannot Be Increased Unless the Productive

question 94

Multiple Choice

If the national output cannot be increased unless the productive capacity or potential GDP increases, the aggregate supply curve is:

• A)downward-sloping.
• B)U-shaped.
• C)vertical.
• D)upward-sloping.
• E)horizontal.

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Definitions:

Private Consumptions

The spending by households on goods and services, excluding purchases of new housing but including healthcare, education, and entertainment.

Majority Vote

A decision-making rule where the option that receives more than half of the votes is chosen.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be used by many people simultaneously without depletion.

Pareto Optimal

A scenario in resource distribution where it's impossible to benefit one individual through reallocation without causing harm to another individual.