Potential Output

question 17

Multiple Choice

Potential output:

• A) is the level of output that the economy would produce if all prices, including nominal wages, were fully flexible.
• B) varies with the price level.
• C) depends on the level of consumer confidence.
• D) is greater in periods of expansion than in recessions.

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Definitions:

Follicle-Stimulating Hormone

A substance produced by the front part of the pituitary gland which prompts the development of ovarian follicles in women and the generation of sperm in men.

Lymphatic System

Part of the immune system, comprising a network of lymphatic vessels that carry a clear fluid called lymph towards the heart, involved in removing waste and fighting infections.

Exocrine System

A network of glands in the body that secrete substances directly into ducts leading to the exterior of the body, such as sweat, saliva, and digestive enzymes.

Blood

A vital liquid in humans and many animals that delivers necessary substances such as nutrients and oxygen to the cells and transports metabolic waste products away from those same cells.