Potential output depends on all of the following except one. Which is the exception?
a. The supply of labor
b. Labor productivity
c. Household choices regarding labor and leisure
d. The technology in current use
e. The number of consumers in the market
e
Economics
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According to New Keynesians, an increase in which of the following will tend to cause the inflation rate to increase?
A) firms' average inflation adjusted per-unit costs of production B) anticipated future inflation C) an unexpected increase in aggregate demand D) all of the above
Economics
Suppose that the quantity of root beer demanded declines from 103,000 gallons per week to 97,000 gallons per week as a consequence of a 10 percent increase in the price of root beer. The price elasticity of demand is
A) 0.60. B) 1.40. C) 1.66. D) 6.00.
Economics