In the USPotential Output in the Long Run Tends To

question 27

Multiple Choice

In the U.S.potential output in the long run tends to:

• A)remain constant
• B)rise at a trend rate of 2.5 to 3.5 percent per year.
• C)fluctuate between 4.5 and 5.5 percent per year.
• D)decline at a trend rate of 7.5 to 8.5 per year.

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Definitions:

Business Executives

Individuals who hold senior managerial positions within a company, responsible for strategic decision-making and leading the organization.

Profit

The financial gain realized when the revenue from a business activity exceeds the costs, expenses, and taxes needed to sustain the activity.

Company

An entity formed to engage in a business activity, ranging from a sole proprietorship to a large corporation.

Stock Market

A collection of markets and exchanges where stocks, bonds, and other securities are bought, sold, and traded.