Economists Use the Term "Potential Output" to Refer to ________

question 9

Multiple Choice

Economists use the term "potential output" to refer to ________.

• A)a level of output that has not yet been achieved
• B)the maximum level of output of which an economy is capable
• C)the sum of finished goods plus goods in production that will be finished within the year
• D)the level of output that occurs when all prices are fully adjusted
• E)none of the above

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Definitions:

Costs

The value of resources used for producing goods or services, or the expenditure incurred in achieving a particular purpose.

Environmentally Harmful

Describes actions or processes that negatively affect the environment, leading to damage or degradation of natural resources.

Businesses

Organizations engaged in commercial, industrial, or professional activities.