When prices of outputs in an economy become sufficiently high causing production to exceed potential GDP, the resulting:
A. hyper-intense production will be unsustainable in the long run.
B. higher wages will encourage workers to produce more at high prices.
C. lower prices will lead to a lower quantity of demand.
D. downward slope in aggregate supply curve will be short run.
Answer:A
When prices of outputs in an economy become sufficiently high causing production to exceed potential GDP, the resulting:
A. hyper-intense production will be unsustainable in the long run. B. higher wages will encourage workers to produce more at high prices. C. lower prices will lead to a lower quantity of demand. D. downward slope in aggregate supply curve will be short run.
Explanation: Type: Multiple Choice