Which of the following is the best definition of potential output?
a. The output that could be produced if the economy were above full employment
b. The output that could be produced if the economy had no unemployment
c. The output that could be produced if the economy had no frictional unemployment
d. The output that could be produced if the economy were at full employment
e. The output that could be produced if the economy had no structural unemployment
D
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By definition, an inferior good is a
A) want that is not expressed by demand. B) normal substitute good. C) good for which demand decreases when its price rises. D) good for which demand decreases when income increases.
The demand curve for labor slopes downward because: a. few workers are willing to work at low wages
b. capital has been substituted for labor in most industries. c. of the diminishing marginal product of labor. d. of all of the above.