The term potential output refers to: a)The maximum possible output for an economy b)The quantity of output that would be produced if every member of the labor force worked 40 hours per week c)The quantity of output produced when the price level is the same as firms and workers expected when they agreed on input prices and wages d)The quantity of output produced at the intersection of the AD and AS curves
The term potential output refers to: a)The maximum possible output for an economy b)The quantity of output that would be produced if every member of the labor force worked 40 hours per week c)The quantity of output produced when the price level is the same as firms and workers expected when they agreed on input prices and wages d)The quantity of output produced at the intersection of the AD and AS curves
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The term potential output refers to:
a)The maximum possible output for an economy
b)The quantity of output that would be produced if every member of the labor force worked 40 hours per week
c)The quantity of output produced when the price level is the same as firms and workers expected when they agreed on input prices and wages
d)The quantity of output produced at the intersection of the AD and AS curves
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