Which of the Following Must Occur to Achieve Large and Lasting

question 33

Multiple Choice

Which of the following must occur to achieve large and lasting increases in output?

• A)An increase in potential GDP.
• B)An increase in the use of existing capacity.
• C)A shift in aggregate supply to the left.
• D)A commitment to contractionary fiscal policy.

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Definitions:

Productivity

A measure of the efficiency of production, often expressed as the ratio of outputs to inputs in a production process.

Per Unit

A measurement specific to one unit of a good or service, indicating cost, price, or quantity related to a single unit.

Output

The total amount of goods or services produced by a company or country.

Input

Resources used in the production process, including labor, raw materials, and capital.