Because there is no single,widely-accepted calculation of the level of Canada's potential output for any given year,the LRAS curve
A) does not exist.
B) should be drawn at an output level of zero.
C) should be drawn as a thick line or band.
D) should be drawn as a thin vertical line.
E) should be drawn as a thin horizontal linE.

Question

Quizplus · Accepted Answer

The LRAS (long-run aggregate supply) curve represents the potential output of an economy in the long run. However, since there is no widely-accepted calculation of Canada's potential output for any given year, the LRAS curve cannot be drawn as a single, precise line. Therefore, it should be drawn as a thick line or band that reflects the range of potential output levels.

Because There Is No Single,widely-Accepted Calculation of the Level of Canada's