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
Correct Answer:

Verified
Correct Answer:
Verified
Q8: Which of the following could cause a
Q9: Output in excess of potential GDP<br>A) implies
Q10: Which of the following would cause an
Q11: Which of the following variables typically moves
Q12: Internationally,recessions<br>A) are likely to begin in the
Q14: The impact of recession<br>A) is, in the
Q15: Assuming aggregate supply is upward-sloping and aggregate
Q16: In the long run,<br>A) nominal wages rise
Q17: Compared to Keynesians,Real Business Cycle theorists<br>A) have
Q18: Over the course of the business cycle<br>A)