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Which of the Following Statements About the Long-Run Aggregate Supply

Question 101

Multiple Choice

Which of the following statements about the long-run aggregate supply curve is true?


A) It is upward sloping in the range where the nominal wage is sticky.
B) It is horizontal in the range where cyclical unemployment is present.
C) It is vertical at the level of potential GDP.
D) It is downward sloping in the range where the real wage is flexible.

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