When Actual Output Is Below Potential Output

question 61

Multiple Choice

When actual output is below potential output

• A) the economic costs of unemployment are zero.
• B) everyone actively seeking a job can easily find one.
• C) extreme inflationary pressure prevails.
• D) less than 95 percent of the labor force is employed.
• E) the economy is producing on its production possibilities curve.

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Definitions:

Glaciers

Massive, slow-moving rivers of ice that form in regions where snowfall exceeds snowmelt over many years.

Air Temperatures

Refer to the current state of the atmosphere's warmth, measured in degrees Celsius or Fahrenheit.

Climate Change

Long-term significant changes in the averages of climate patterns or in the distribution of weather events over periods ranging from decades to millions of years.

Long Wave Radiation

Thermal radiation emitted by the Earth and its atmosphere back into space; it has a longer wavelength compared to solar radiation.