If an Economy Is at Its Potential Output Level, Which

question 155

Multiple Choice

If an economy is at its potential output level, which of the following is not true?

• A) The economy is at its full-employment output level.
• B) Unemployment is at the natural level.
• C) The price level is zero.
• D) The output level being produced can be sustained indefinitely given the economy's resources and technology.
• E) The only unemployment is frictional or structural.

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Definitions:

Measure Of Central Tendency

A descriptive statistic that is the most typical, common, or frequently occurring value for a variable.

Median

The middle value of a sorted set of data, or the point that divides a distribution into two equal halves, used as a measure of central tendency.

Set Of Data

A collection of data values or points, whether numerical or categorical, gathered from a study or observational process.

Mode

The value appearing with the greatest frequency in a dataset.