Potential income is that level of income that:
A. an economy is capable of producing without generating unemployment.
B. the economy always produces.
C. an economy is capable of producing without generating higher inflation.
D. toward which the economy gravitates in the short-run.
Answer: C
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Which of the following is false?
A. The completion of the national railroad network by 1890 led to the development of a national American market rather than just a series of smaller regional markets. B. Before the Civil War the North and the South were in agreement on the issue of protective tariffs, but were in conflict over the spread of slavery into the new Western territories. C. The U.S. was the first mass-consumption society. D. From 1900 to the end of World War I, U.S. farmers prospered.
"Even though we can convert them into money, deposits at banks are not money." Is the previous statement correct or not?
What will be an ideal response?
The feedback effect can be thought of as a type of
A) social regulation. B) economic regulation. C) creative response, which reduces the law's effectiveness. D) regulatory lag.
Assume a country experiences heavy capital outflows. What is the first round effect on the real risk-free interest rate?
a. The change in the real risk-free interest rate is ambiguous. b. The real risk-free interest rate rises. c. The real risk-free interest rate falls. d. The real risk-free interest rate is unaffected.