Which of the following statements best describes the U.S. economy since 1960?
a. Potential output has risen steadily, but actual output has fluctuated above and below full-employment output.
b. Actual output has risen steadily, but potential output has fluctuated above and below actual output.
c. Potential output and actual output have both not risen steadily.
d. Potential output and actual output have both fluctuated above and below what the classical model predicts.
e. Potential output has remained constant but actual output has risen.
A
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A market in which businesses, households, and governments buy and sell national currencies is
A) the foreign exchange market. B) the currency exchange market. C) the money exchange market. D) the dollar exchange market.
Marginal cost
A. always equals average cost. B. is the increase in total cost resulting from producing one more unit. C. equals the increase in AVC resulting from producing one more unit. D. is the average cost of production divided by output.