Potential output in an economy decreases as the supply of labor decreases or the capital stock increases

Indicate whether the statement is true or false

FALSE

Economics

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A credit-driven bubble arises when ________ in lending causes ________ in asset prices which can cause ________ in lending

A) a decrease; a decrease; an increase B) a decrease; an increase; an increase C) an increase; an increase; a further increase D) a decrease; a decrease; a further decrease

Economics

Explain the logic behind the First Theorem of Welfare Economics

What will be an ideal response?

Economics