When Actual Output Increases the Potential Output,_____

question 48

Multiple Choice

When actual output increases the potential output,_____.

• A)more resources become unemployed.
• B)prices remain constant.
• C)prices tend to increase.
• D)nominal GDP decreases.
• E)resource prices decrease.

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Definitions:

Fixed Capital

Assets with long-term use in the production process, such as buildings, machinery, and equipment, which are not consumed in the production but are essential for it.

Productivity

A measure of the efficiency of production, often expressed as the ratio of inputs to the outputs generated.

Airline Pilots

Qualified individuals authorized to operate the flight controls of an aircraft.

Fruit Pickers

Individuals who harvest fruit crops, often working seasonally and moving locations based on harvest times.