Potential output is the
a. maximum rate of output that can ever be achieved.
b. highest rate of output that has ever been achieved in the past.
c. maximum sustainable output level consistent with the economy's resource base and current institutions.
d. the rate of output present when the general level of prices is unstable.
C
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Non-activists believe that the principal source of AD instability is
A) private investment spending. B) private consumption spending. C) erratic government policy. D) All of the above.
Considering that the U.S. places a quota on imports of steel from South Korea, which of the following would NOT likely occur?
A) The price of steel in the United States would increase. B) The quantity of steel produced in the United States would increase or stay the same. C) The demand for steel in the United States will increase. D) The quantity demanded for steel in the United States will decrease.