If Potential Output Exceeds Actual Output, Eventually

question 33

Multiple Choice

If potential output exceeds actual output, eventually:

• A)input prices will rise and output will fall.
• B)both input prices and output will rise.
• C)input prices will fall and output will rise.
• D)both input prices and output will fall.

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Definitions:

Growth Models

Economic theories that explain how economic growth occurs in the long-term by focusing on factors like savings, investment, and technological innovation.

Technical Analyst

A professional who evaluates securities by analyzing statistics generated by market activity, such as past prices and volume.

Fundamental Analyst

An individual who evaluates securities by attempting to measure their intrinsic value based on economic and financial factors.

Past Price Patterns

Historical price movements of securities used by traders and analysts in the technical analysis to predict future market behavior.