Aggregate supply (AS) denotes the relationship between the __________________ that firms choose to produce and sell and the _________________, holding the price of inputs fixed.

Question 1 options:

total quantity; price level for output

total inputs; types of goods

type of goods; input price of raw materials

price of goods; number of employees

Question 2(2 points)

The maximum quantity that an economy can produce, given its existing levels of labor, physical capital, technology, and institutions, is called:

Question 2 options:

aggregate demand.

real GDP

aggregate supply.

potential GDP.

Question 3(2 points)

When the economy of a country is operating close to its full capacity

Question 3 options:

unemployment is close to zero.

cyclical unemployment is close to zero.

the unemployment rate is less than the natural rate of unemployment.

the unemployment rate is greater than the natural rate of unemployment.