Potential output is:
(a)the level of output that the economy would produce if all process, including nominal wages, were fully flexible.
(b)varies with the price level
(c)is dependent on the level of consumer confidence
(d)is greater in periods of expansion than in recession.
a is similar to the definition, but not exactly the same. and d seems to make sense. Do you know the answer?
(a)the level of output that the economy would produce if all process, including nominal wages, were fully flexible.
(b)varies with the price level
(c)is dependent on the level of consumer confidence
(d)is greater in periods of expansion than in recession.
a is similar to the definition, but not exactly the same. and d seems to make sense. Do you know the answer?