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The Economy's Capacity to Produce Is Defined in Such a Way

Question 13

Multiple Choice

The economy's capacity to produce is defined in such a way that


A) output cannot exceed capacity
B) the growth of potential GDP corresponds to the economy's long run trend
C) the economy is always operating at its current potential
D) there is always a degree of slack or inefficiency in production, so output is always below capacity
E) when workers work overtime, capacity expands

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