Limited access

Upgrade to access all content for this subject

In the AD/AS model, if the aggregate demand, short-run aggregate supply, and long-run aggregate supply curves intersect at Q1, then which of the following would be true of the Production Possibilities curve representing that economy?

A

Q1 would be marked below the production possibilities curve.

B

Q1 would be drawn above the production possibilities curve.

C

Q1 would be drawn on the production possibilities curve.

D

The equilibrium point is not able to be shown on such a curve.

E

Q1 would be drawn at the intersect of a 45-degree line that splits the production possibilities curve into two equal parts.

Select an assignment template