If an Economy Is at Its Potential Output Level, Which

question 155

Multiple Choice

If an economy is at its potential output level, which of the following is not true?

• A) The economy is at its full-employment output level.
• B) Unemployment is at the natural level.
• C) The price level is zero.
• D) The output level being produced can be sustained indefinitely given the economy's resources and technology.
• E) The only unemployment is frictional or structural.

---

Definitions:

Supply Chain Surplus

The difference between the value generated by the supply chain's final product to the end customer and the costs of the supply chain.

Consumer Surplus

The difference between the total amount consumers are willing to pay for a good or service and the total amount they actually pay.

Cerebral Cortex

The outer layer of the brain, responsible for complex functions including thought, memory, and voluntary movement.

Motor Speech

The process that involves the planning and execution of movements required for the production of speech.