In the neoclassical version of the AD/AS model, which of the following should you use to represent the AS curve?
A. the AS curve shifting as productivity increases
B. an upward sloping curve with a vertical top
C. a vertical line drawn at the level of potential GDP
D. the AS curve shifting as potential GDP expands
Answer:C
In the neoclassical version of the AD/AS model, which of the following should you use to represent the AS curve?
A. the AS curve shifting as productivity increases B. an upward sloping curve with a vertical top C. a vertical line drawn at the level of potential GDP D. the AS curve shifting as potential GDP expands
Explanation: Type: Multiple Choice