Potential Output Is the

question 110

Multiple Choice

Potential output is the

• A) maximum rate of output that can ever be achieved.
• B) highest rate of output that has ever been achieved in the past.
• C) maximum sustainable output level consistent with the economy's resource base and current institutions.
• D) the rate of output present when the general level of prices is unstable.

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Definitions:

Assumptions

Premises or conditions that are accepted as true or as certain to happen, without proof, within the context of a specific model or method.

Null Hypothesis

A statistical hypothesis that assumes no significant difference or effect exists between certain characteristics of a population or data set.

Level of Risk

The probability or likelihood of an adverse event or outcome occurring, often assessed in the context of decision making and finance.

Fisher's Exact Test

A statistical significance test used for small sample sizes and designed for categorical data, to examine the significance of the association between two kinds of classifications.