To Compare the Economy's Aggregate Output in Two Different Time

question 64

Multiple Choice

To compare the economy's aggregate output in two different time periods,economists compare the

• A)nominal national income for the two periods.
• B)potential national incomes for the two periods.
• C)real national income for the two periods.
• D)unemployment rates for the two periods.
• E)inflation rates for the two periods.

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Definitions:

Full Employment

A situation where all available labor resources are being utilized in the most economically efficient way, with no involuntary unemployment.

Property Rights

Legal rights to possess, use, and dispose of assets including physical, intellectual, and real property.

Mutually Agreeable Transactions

Exchanges between parties that both sides consent to because they are beneficial.

Equal Distribution

The concept of ensuring that resources, wealth, or opportunities are evenly distributed among all members of society.