CFA Practice Question

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CFA Practice Question

Refer to the graph below. The potential output curve is best shown by ______.

A. Curve A
B. Curve B
C. Curve C
D. Curve D
Correct Answer: A

The potential output curve is vertical because potential output is unaffected by price level.

User Contributed Comments 4

User Comment
dipu617 Is it the supply curve?
thekobe is the LRAD
schweitzdm It seems to be the LAS.
kay136 Agree it's LAS. LRAD is curve C.
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