Potential output
a. is defined as the level of real output that the economy could produce at high rates of resource utilization.
b. only occurs when both the unemployment rate and inflation rate are zero.
c. can be estimated by choosing benchmark measures of high resource utilization.
d. Both a and c
D
Economics
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The quantity theory of money seeks to explain the connection between money and
A) output. B) unemployment. C) prices. D) interest rates.
Economics
Using the income approach, an estimate of the value of capital worn out producing GDP is:
a. indirect business taxes. b. capital consumption allowance or depreciation. c. gross private domestic investment. d. capital erosion estimate.
Economics