Use the Following to Answer Questions

question 36

Multiple Choice

Use the following to answer questions:
Figure: Aggregate Supply
-(Figure: Aggregate Supply) Refer to Figure: Aggregate Supply. If the economy is at point E:

• A) actual output is less than potential output.
• B) actual output is more than potential output.
• C) actual output is equal to potential output.
• D) potential output will decrease.

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Definitions:

Voidable

A term describing a legal contract or action that may be nullified or terminated at the discretion of one or both parties involved.

Covenant Not to Compete

An agreement where one party agrees not to enter into or start a similar profession or trade in competition against another party.

Ongoing Business

A company or commercial enterprise that continues to operate and engage in its activities, as opposed to one that is in the process of closing down or has ceased operations.

Noncompetition

An agreement, often within a contract, that restricts one party from competing directly with another party, usually after termination of the agreement.