Use the following to answer question:
-(Figure: Consumer and Capital Goods) Use Figure: Consumer and Capital Goods.The movement from curve 1 to curve 2 indicates:
Definitions:
Potential GDP
The highest level of economic output that an economy can sustain over the long term without increasing inflation.
Capital Spending
Expenditure by businesses on physical assets like buildings, machinery, and equipment to enhance their capacity or efficiency.
Privatization
The process of turning government enterprises into private enterprises.
U.S. Economy
The economic system of the United States, characterized by a mixed economy with private freedom combined with centralized economic planning and government regulation.
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