The Economy's Potential Output Is

question 173

Multiple Choice

The economy's potential output is

• A) the maximum output that could be achieved temporarily during a time of economic boom.
• B) the minimum output that could be achieved during a recession.
• C) present when 100 percent of the labor force is employed.
• D) the maximum sustainable output of the economy given its resources.

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Definitions:

Tenacity

A personality trait characterized by persistence and determination in pursuing goals despite obstacles or difficulties.

Exploration

“Mapping out” a new area of research before proceeding to study it more specifically. This sort of research may lead down unknown paths as opposed to testing a specific hypothesis.

Exploration

The process of searching or traveling with the aim of discovery.

One-tailed Hypothesis

A statistical test hypothesis that specifies the direction of the expected difference or relationship.