If the national output cannot be increased unless the productive capacity or potential GDP increases, the aggregate supply curve is:
a. downward-sloping.
b. U-shaped.
c. vertical.
d. upward-sloping.
e. horizontal.
Question 2
In the discussion of correlation and causation, correlation means:
a. two sets of phenomena may be related, but one does not necessarily cause the other.
b. two sets of phenomena are not related and one may in fact cause the other.
c. that when two phenomena are repeatedly observed together, one must cause the other.
d. that if a groundhog sees his shadow in February, this phenomena causes there to be six more weeks of bad weather.
