Potential Output Is Equal to

question 133

Multiple Choice

Potential output is equal to

• A) long run aggregate demand.
• B) short-run aggregate demand.
• C) short-run aggregate supply.
• D) long-run aggregate supply.

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Definitions:

Capitalism

An economic system characterized by private or corporate ownership of capital goods, investments determined by private decision, and prices, production, and distribution of goods determined primarily by competition in a free market.

Private Property

Property owned by individuals or companies, not by the state or public entities, and protected by law; includes both tangible and intangible assets.

Social Solidarity

The sense of unity and mutual support within a society, which binds individuals together and facilitates cooperation.

Strangers

Individuals who are unknown or unfamiliar to one another, often highlighting the potential for neither positive nor negative expectations in initial interactions.