An Economy's Potential Level of Output Can Be Altered by Changes

question 46

Multiple Choice

An economy's potential level of output can be altered by changes in:

• A)the actual price level.
• B)the expected price level.
• C)aggregate demand.
• D)real GDP.
• E)its stock of capital.

---

Definitions:

United States

A federal republic in North America comprising 50 states, a federal district, five major self-governing territories, and various possessions.

Treaty of Paris

A historic agreement that ended the American Revolutionary War in 1783, acknowledging the United States of America as an independent nation.

Territories Acquired

Refers to regions or lands gained by a country either through purchase, conquest, or treaty, adding to the nation's domain.

Wake Island

A strategic atoll in the Pacific Ocean used as a military base and refueling stop, notable for its role in World War II and subsequent American military history.