If an Economy Is Operating at Potential Output

question 53

Multiple Choice

If an economy is operating at potential output:

• A)any surplus would be a cyclical surplus.
• B)any surplus would be a structural surplus.
• C)a budget surplus is impossible.
• D)the budget must be in surplus.

---

Definitions:

Gestation

The period of development between conception and birth when a fetus develops inside the mother’s uterus.

Quiet Sleep

A sleep phase in infants characterized by minimal movement and a steady breathing pattern, also referred to as non-REM sleep.

Temperamental Characteristics

Fundamental aspects of an individual's personality, such as mood, disposition, and responsiveness, thought to be innate rather than learned.

Fussiness

Exhibiting irritability or restlessness, especially common in infants and young children, often due to discomfort or hunger.