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6:30 PM ccsu.blackboard.com AT&T; 56%- QUESTION 2 points Saved Aggregate supply

ID: 1112105 • Letter: 6

Question

6:30 PM ccsu.blackboard.com AT&T; 56%- QUESTION 2 points Saved Aggregate supply (AS) denotes the relationship between the that firms choose to produce and seand the holding everything else constant (imput prices, technology, taxes, etc) total inputs, types of goods OB price of goods; number of employees OC type of goods; input price of raw D.total output; price level QUESTION 2 1 points Saved The maximum quantity that an economy can produce when at the natural rate of unemployment given its existing levels of human capital, physical capital, technology, and natural resources, is called aggregate demand OB. real GDP OC aggregate supply OD potential GDP QUESTION 3 2 points While the AD-AS model does not directly show the unemployment rate, we can infer what is happening to looking at what happens to the level of output We know that employment and output are correlated so that unemployment tends to when aggregate outputand vise versa O A. rise: falls O B. does not change; rises rises; rises OD.talls: falls Click Save and Submit to save and submit. Cick Save A Answers to save all answers Save All Answers resents the aggregate

Explanation / Answer

Answer:- Aggregate supply (AS) denotes the relationship between the ______________ that firms choose to produce and sell and the_____________, holding the price of inputs fixed.

Correct Answer:- Total output and price level

Reason:- AS is the total supply which is planned by the economy to supply in a certain time.

Answer:- The maximum quantity that an economy can produce, given its existing levels of labor, physical capital, technology, and institutions, is called:

Correct Answer:- potential GDP.

Reason:- Potential GDP is the level of output which can be produced by the economy at the prevailing inflation rate

Answer 3:- The correct option is:- rise and falls

Reason:- when output decreases, lesser production requirement results in firing of existing manpower and thus giving rise to unemployment