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:

Bill of Rights

The first ten amendments to the U.S. Constitution, guaranteeing fundamental rights and freedoms to American citizens.

Supreme Court

The highest federal court in the United States, noted for its power of judicial review to interpret the Constitution.

Criminally Accused

A person or entity that has been charged with a crime or criminal conduct, pending legal proceedings to determine guilt or innocence.

Fifth Amendment

An amendment to the U.S. Constitution that provides several protections against abuse of government authority, including rights to due process, protection against self-incrimination, and double jeopardy.