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.

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Definitions:

Elaboration Likelihood Model

A theory in social psychology that explains different ways of processing stimuli, why they are used, and their outcomes on attitude change.

Central

Pertaining to the most important or primary component in a system or concept.

Peripheral

Relating to or situated on the edge or periphery of something, often indicating a boundary or outside limit.

Peripheral Route

In the Elaboration Likelihood Model of persuasion, a way of processing information that does not involve deep thinking and focuses on superficial cues.