When Does Actual Output Fall Below Potential Output

question 137

Multiple Choice

When does actual output fall below potential output?  

• A) during a recession 
• B) when aggregate demand exceeds aggregate supply 
• C) when the natural rate of unemployment exceeds the actual rate of unemployment 
• D) when the natural rate of unemployment is zero

---

Definitions:

Race-based Distinctions

The practice or policy of differentiating individuals based on racial characteristics, often leading to discrimination or inequality.

Afro-American League

An early civil rights organization in the United States, aimed at advocating for African American rights and challenging racial discrimination.

T.Thomas Fortune

An African American journalist, editor, and writer, recognized as a leading advocate of civil rights and economic empowerment for African Americans in the late 19th and early 20th centuries.

Freeman

Historically, an individual who was not a serf or slave and possessed certain rights; in the context of American history, often refers to a former slave who has been emancipated.