The vertical portion of the aggregate supply curve shows, Ask an Expert

Economics

The vertical portion of the aggregate supply curve shows that at full employment an increase in the price level will:

1. Improve the overall efficiency of resource use.

2. Increase the economy's full-employment real GDP.

3. Not alter the economy's full-employment real GDP.

4. Reduce the quantity of goods and services purchasers will demand.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91224492

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