Potential GDP is:
A) minimum amount of output that can be produced given the labor force, capital stock, and technology.
B) maximum amount of output that can be produced given the labor force, capital stock, and technology.
C) varies over the business cycle.
D) none of the above.
B
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What does the aggregate demand curve show? What factors change and what factors remain the same when there is a movement along the aggregate demand curve?
What will be an ideal response?
An import quota is:
A. a tax on the good or services that are imported. B. a limit on the amount of a particular good that can be exported. C. a limit on the amount of a particular good that can be imported. D. None of these is true.
Assume you are a critic of welfare reforms that impose a time limit on the number of years a person is eligible for welfare benefits. What is the foundation of your critique?
Whenever the marginal cost curve lies below the average total cost curve, the:
A. average total cost is decreasing. B. average variable cost is increasing. C. average total cost is increasing. D. average variable cost is decreasing.