Which of the Following Is a True Statement

question 94

Multiple Choice

Which of the following is a true statement?

• A)The concept of potential output might be thought of as the maximum sustainable output of the economy under normal circumstances.
• B)Actual output cannot exceed potential output, even during a boom.
• C)When the actual rate of unemployment exceeds the natural rate, the actual output of the economy will rise above its potential.
• D)Potential output represents the absolute maximum level of production.