An AD/AS model showing equilibrium in the steep section of the aggregate supply curve suggests a....

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An AD/AS model showing equilibrium in the steep section of the aggregate supply curve suggests a....

An AD/AS model showing equilibrium in the steep section of the aggregate supply curve suggests

a.	the economy is in recession.

b.	potential GDP is being exceeded.

c.	potential GDP is being met.

business economics

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Answer 1

Answer #1

Steep section of aggregate supply curve suggest that economy is at or near the potential GDP.

The option C is correct.

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Answer 2

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