A nearly vertical aggregate supply curve occurs

A) when the economy is producing close to the maximum output level.
B) whenever an economy is in a recession.
C) in an economy with considerable cyclical unemployment.
D) in an economy with much idle capacity.

Aggregate Supply Curve

A graphical representation showing the total supply of goods and services that firms in an economy are willing and able to produce at different price levels.

Maximum Output Level

The highest quantity of goods or services an economy or enterprise can produce using its current resources and technology.

Cyclical Unemployment

When people are out of work because the economy is operating below the full-employment level. It rises sharply during recessions.