The Potential Output of an Economy Is

question 18

Multiple Choice

The potential output of an economy is:

• A)the output level at which inflation is very high.
• B)the output level at which nominal GDP is equal to real GDP.
• C)less than the full-employment rate of output.
• D)the output level at which total unemployment is zero.
• E)also referred to as the natural rate of output.

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Definitions:

Minor

A person under the age of legal adulthood, which varies by jurisdiction but is typically 18 years old in many countries.

Adjudicated

Having undergone a legal process by which an official decision or judgment is made regarding a dispute.

Mentally Incompetent

A legal status referring to an individual's lack of capacity to make decisions due to mental disability or illness.

Disaffirmance

The legal right of a party to reject or void a contract or agreement, often due to factors like minority status or duress.