When Actual Output Exceeds Potential Output, _____

question 74

Multiple Choice

When actual output exceeds 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:

Erie Canal

A canal in New York, USA, that is part of the east-west, cross-state route of the New York State Canal System. Originally, it ran 363 miles from where Albany meets the Hudson River to Buffalo at Lake Erie, completed in 1825 and significantly impacting the development of the American Northeast and Midwest.

John Jacob Astor

A German-American businessman, merchant, real estate mogul, and investor known for being one of the wealthiest people in America in the early 19th century, notably in the fur trade and for purchasing vast amounts of land in New York City.

Self-Made Man

A person who has achieved success or wealth through their own efforts, particularly from a starting point of low status or disadvantage.

American Birthrate

The statistical measure that denotes the number of live births per thousand people in the United States within a given time period.