Which of the Following Is True

question 16

Multiple Choice

Which of the following is true?

• A)Aggregate supply is another name for potential GDP.
• B)Potential GDP increases as the price level increases.
• C)At full employment,aggregate supply is equal to potential GDP.
• D)Potential GDP decreases as the price level increases.
• E)The potential GDP line has a negative slope.

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Definitions:

Partnership Income

The earnings distributed to partners of a partnership based on the terms of the partnership agreement.

Equal Division

The process of dividing something into parts or portions that are as nearly equal as possible.

LLP

Limited Liability Partnership, a partnership in which some or all partners have limited liabilities, protecting personal assets from debts and liabilities of the partnership.

Net Income

The total profit of a company after all expenses, including taxes and interest, have been deducted from total revenues.