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Which of the following is the full employment zone of the Keynesian long-run aggregate supply curve?

A. the transition portion
B. the entire curve
C. the horizontal portion
D. the vertical portion

Sagot :

GinnyAnsweridn

Final answer:

The full employment zone of the Keynesian long-run aggregate supply curve is the horizontal portion where the economy operates at potential GDP with low unemployment.


Explanation:

The full employment zone of the Keynesian long-run aggregate supply curve is the horizontal portion. In this zone, the economy is operating at its potential GDP, where all available labor and machinery are fully employed, leading to a relatively low unemployment rate. Potential GDP in this zone is also termed as full-employment GDP.


Learn more about Keynesian Long-Run Aggregate Supply Curve here:

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