If an Economy Is at Its Potential Output Level,which of the Following

question 201

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,structural,or seasonal.

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Definitions:

Period Cost

Expenses that are not directly tied to the production process and are expensed in the period in which they occur.

Salespersons Bonuses

Additional compensation awarded to sales employees based on their performance.

Selling Expense

Costs associated with the marketing and selling of a company's products or services, including advertising and sales personnel expenses.

Period Cost

Costs that are not directly tied to the production of goods and are expensed within the period they occur.