Refer to the information provided in Figure 26.7 below to answer the question(s) that follow. Figure 26.7
-Refer to Figure 26.7. The level of aggregate output that can be sustained in the long run without inflation
A) is $800 million.
B) is $700 million.
C) is $400 million.
D) cannot be determined from this information because aggregate demand is not given.

Question

Refer to the information provided in Figure 26.7 below to answer the question(s) that follow.  Figure 26.7
-Refer to Figure 26.7. The level of aggregate output that can be sustained in the long run without inflation
A) is $800 million. 
B) is $700 million. 
C) is $400 million. 
D) cannot be determined from this information because aggregate demand is not given.

Quizplus · Accepted Answer

According to the vertical long-run aggregate supply curve in Figure 26.7, the level of aggregate output that can be sustained in the long run without inflation is the intersection point with the aggregate demand curve at $700 million.

Refer to the Information Provided in Figure 26