A vertical AS curve means that the level of aggregate supply (or potential GDP) will determine the real GDP of the economy, regardless of the level of A. cyclical unemployment. B. real unemployment. C. aggregate demand. D. inflationary pressures.

Question

Social Studies

Joseph Sheppard

3 November, 13:18

A vertical AS curve means that the level of aggregate supply (or potential GDP) will determine the real GDP of the economy, regardless of the level of A. cyclical unemployment. B. real unemployment. C. aggregate demand. D. inflationary pressures.

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Answers (1)

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Cade Mccarthy · Answer 1

C. aggregate demand

Explanation:

AS curve:

It is described by the allocative efficiency curve, reflecting the relationship between price levels and the amount of production that companies are willing to provide. The correlation between allocative efficiency and market price is usually positive ... A vertical AS curve indicates that the aggregate supply level will decide the economy's actual GDP, independent of the level of aggregate demand.

Therefore the answer is C.

C. aggregate demand