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29-05-2023
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Question 2Multiple Choice ) (05.06 MC) Which of the following is true, with respect to the relationship between the production possibility curve (PPC) and the long-run aggregate supply curve (LRAS)? The LRAS is negatively related to the production possibility curve. The LRAS is vertical, whereas the production possibility curve is concave to the origin; hence there is no such relationship. The LRAS represents a point on an economy's PPC. The PPC is a downward sloping curve; therefore, a single point on this curve represents the economy's output in the short run. The PPC represents the minimum output an economy produces with scarce resources.

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