If Potential GDP Increases,then in the Figure Above the Potential

question 185

Multiple Choice

If potential GDP increases,then in the figure above the potential GDP line ________,and the aggregate supply curve ________.

• A)shifts rightward;does not shift
• B)does not shift;shifts rightward
• C)shifts rightward;shifts rightward
• D)shifts rightward;shifts leftward
• E)does not shift;does not shift

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Definitions:

Aluminum

A chemical element, symbol Al, known for its lightweight properties and wide use in various industries such as transportation, construction, and packaging.

Differentiated Oligopolist

A type of oligopoly where firms sell products or services that are distinct from each other and are not perfect substitutes.

Highly Concentrated

Describes a market or industry dominated by a small number of firms, leading to reduced competition and possibly higher prices and lower output.