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Loraine Loraine
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9 years ago
Potential GDP
A) increases as the price level increases because firms supply more goods and services.
B) decreases as the price level increases because people demand fewer goods and services.
C) might either increase or decrease as the price level increases, depending on whether aggregate demand increases or decreases.
D) is independent of the price level.
E) never changes.
Textbook 
Essential Foundations of Economics

Essential Foundations of Economics


Edition: 7th
Authors:
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Start by doing what's necessary; then do what's possible; and suddenly you are doing the impossible.
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SydnieSydnie
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9 years ago
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8 years ago
I was confident with my answer, glad it was correct.

Oh, and thumbs-up are more than welcome Slight Smile
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