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The maximum quantity that an economy can produce, given its existing levels of labor, physical capital, technology, and institutions, is called aggregate demand aggregate supply potential GDP obligatory GDP

The maximum quantity that an economy can produce, given its existing levels of labor, physical capital, technology, and institutions, is called aggregate demand aggregate supply potential GDP obligatory GDP

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The maximum quantity that an economy can produce, given its existing levels of labor, physical capital, technology, and institutions, is called aggregate demand aggregate supply potential GDP obligatory GDP Question 14 In the AD/AS model, the SRAS curve is the vertically sloped; producers are limited to producing at potential GDP horizontally sloped; producers are limited to producing at potential GDP upward-sloping; producers can change quantity supplied downward-sloping; producers can change quantity supplied Question 15 AS curve, where______ in the short run. In the neoclassical zone of the SRAS curve, the equilibrium is far from potential GDP only a rightward shift in AS can increase the size of the real GDP the curve is relatively flat prices are lower than in the Keynesian zone
Transcribed Image Text:The maximum quantity that an economy can produce, given its existing levels of labor, physical capital, technology, and institutions, is called aggregate demand aggregate supply potential GDP obligatory GDP Question 14 In the AD/AS model, the SRAS curve is the vertically sloped; producers are limited to producing at potential GDP horizontally sloped; producers are limited to producing at potential GDP upward-sloping; producers can change quantity supplied downward-sloping; producers can change quantity supplied Question 15 AS curve, where______ in the short run. In the neoclassical zone of the SRAS curve, the equilibrium is far from potential GDP only a rightward shift in AS can increase the size of the real GDP the curve is relatively flat prices are lower than in the Keynesian zone
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