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    Principles of Economics Study Set 1
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    Exam 24: Short-Term Economic Fluctuations: An Introduction
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    Potential Output Is
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Potential Output Is

Question 20

Question 20

Multiple Choice

Potential output is:


A) equal to actual output.
B) also known as the output gap.
C) the same as the natural rate of unemployment.
D) the maximum sustainable amount of output.

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