Exhibit 2 Macro AD-AS Model In Exhibit 2, the long-run aggregate supply curve represents:
A)potential real GDP output for this economy.
B)that the economy is experiencing zero inflation.
C)that the economy is experiencing a recessionary gap.
D)the level of real GDP where the unemployment rate is zero.

Question

Exhibit 2 Macro AD-AS Model  In Exhibit 2, the long-run aggregate supply curve represents:
A)potential real GDP output for this economy. 
B)that the economy is experiencing zero inflation. 
C)that the economy is experiencing a recessionary gap. 
D)the level of real GDP where the unemployment rate is zero.

Quizplus · Accepted Answer

The Answer of Exhibit 2 Macro AD-AS Model  In Exhibit 2, the long-run aggregate supply curve represents:
A)potential real GDP output for this economy. 
B)that the economy is experiencing zero inflation. 
C)that the economy is experiencing a recessionary gap. 
D)the level of real GDP where the unemployment rate is zero.

Exhibit 2 Macro AD-AS Model in Exhibit 2, the Long-Run