Which of These Is Most Likely to Reduce the Potential

question 131

Multiple Choice

Which of these is most likely to reduce the potential output of an economy?

• A)An increase in the size of the labor force
• B)A deterioration in the quality of the labor force
• C)A decrease in the cost of using computers
• D)A decrease in the price level
• E)An increase in the price level

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Definitions:

Trial Balance

A trial balance is a bookkeeping report that lists the balances of all ledgers accounts in two columns, debits and credits, ensuring that total debits equal total credits.

Accounts Payable

Liabilities to creditors for goods or services that have been received but not yet paid for.

Credit

An accounting entry that increases liabilities or equity or decreases assets, representing a transfer of value in financial transactions.

Trial Balance

A bookkeeping report that lists the balances of all ledgers accounts to verify that total debits equal total credits.