Question
Potential output is the most that can be produced in an economy at a particular point in time.
Select one:
O True
False
View transcribed image text
Expand
Expand

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Economics

Macroeconomic Policy

Aggregate Demand

Related Economics Q&A

Find answers to questions asked by students like you.

Q: 2001, a country had a real GDP of $30,000,000 and in 2002, real GDP was $40,000,000. What was the co...

A: The real GDP is the inflation adjusted level of GDP in the economy. The GDP is the summated money va...

Q: Calculate how much output would expand by if the government increased spending by $500 billion and f...

A: Government spending multiplier = 1 / 1 - MPC MPC = Marginal propensity to consume  Change in aggrega...

Q: The marginal propensity to save is given by  MPS = 0.5 - 0.2Y-1/2 . There is dissaving of GH¢3.5 whe...

A: Click to see the answer

Q: Everything else held constant, a decrease in net exports Select one: aggregate a. increases; supply ...

A: Aggregate demand curve represents the total quantity of an economy's final goods and services demand...

Q: Analyze the role of the government when determining prices in markets

A: Governance is one of the main factors in deciding consumer prices. The government takes its stand wh...

Q: 32. A market in which there are only a few firms and each is able to influence the market price is t...

A: In economics market structure basically means the number of firms producing homogeneous products whi...

Q: Which of the following is part of a firm's opportunity costs? I. wages II. utility costs III. intere...

A: Hey, Thank you for the question. According to our policy we can only answer 1 question per session. ...

Q: The following table shows nominal GDP and an appropriate price index for a group of selected years. ...

A: Price Index = (Nominal GDP/Real GDP)*100 Therefore, Real GDP = (Nominal GDP/Price Index)*100  

Q: Do business firms operating in competitive markets have a strong incentive to serve the interest of ...

A: The perfect competition is a market condition in which there are many producers and the production o...

Q: What action could the TCMB take to reduce the crowding-out effect of an expansionary fiscal policy?

A: Expansionary fiscal policy involves increasing government spending or decreasing taxes, which increa...

Q: Mid-Valley Industrial Extension Service, a state-sponsoredagency, provides water quality sampling se...

A: IH: initial cost (IC) is $125,000, annual operating cost (AC) is 15,000. Annual salary cost (AS) is ...

Q: i need help with this macroecon question 6

A: According to the given information, if the price of bracelets falls, making of earrings will become ...

Q: 41 The change in producer surplus as a result of the shuft in the graph below is equal to 1050 b. 10...

A: 41. Producer surplus is the area below price and above the supply curve. Producer Surplus Before shi...

Q: In the 2007-2009 period, the expenditure level in the United States intersected the 45- degree line ...

A: Hey, Thank you for the question. According to our policy, we can only answer 1 question per session....

Q: i need help getting this question right from macroecon question 4

A: Click to see the answer

Q: 4- Why was the Dodd-Frank Wall Street Reform and Consumer Protection Act passed? 5-Please briefly di...

A: Since you have posted multiple questions and not specified which question needs to be solved, we wil...

Q: 4. Assume that the demand function for a commodity is given by 2. and that the supply function is gi...

A: Given: Qd = 3-0.1P QS = 1+0.05P Suppose tax of amount t is levied: Supply equation changes and is: Q...

Q: A consumer buys 10 units of goods X at a price of $5 per unit. the price elasticity of demand for th...

A: At price $5, the quantity bought = 10 units Price elasticity of  demand = 2 New price = $4

Q: Two variables that affect the slope of the aggregate demand curve are Select one: a. tax rates and i...

A: There are three main reasons because of which the slope of the aggregate demand curve gets affected:...

Q: You are investigating the use of automated robots to replace some of the tasks performed by waiters ...

A: When only humans work in the restaurant. Number of workers - $15 and wage per hour - $15. The estima...

Q: An increase in AD will primarily increase the price level when the economy is on the steep part of t...

A: The aggregate demand is the summation of the demand from all the economic agents such as the househo...

Q: Suppose a nation has a total of 12 units of labor, which can be used to produce either guns or butte...

A: The nation has a total of 12 units of labor. One unit of the gun is produced by 6 units of labor, th...

Q: question 3 micro

A: 1) A good with many close substitutes is likely to have relatively elastic demand. Explanation-: An ...

Q: Suppose that during a recent year for the United States, merchandise imports were $2 trillion, unila...

A: A merchandise trade deficit occurs when a country imports more goods than it exports in a given span...

Q: What are the common law rules regarding contracts entered into by infants ,and when are such contrac...

A: General rule regarding contracts with infants are: Such contracts are voidable There can be denial ...

Q: Rincon, LLC is considering a project that will require an initial investment of $750,000 with estima...

A: a. The initial investment (IN) is $750,000. Net income (NY) is $135,000 per year. Time period (n) is...

Q: A feasible production combination for a firm producing two outputs must be Outside the production po...

A: A Production Possibility Frontier can be defined as a combination of different bundles of two goods ...

Q: Show and explain the derivation of AD curve by taking the link between the money market and the good...

A: Click to see the answer

Q: Durco Automotive needs a $1 million balance in its contingency fund 3 years from now. The CFO (chief...

A: Click to see the answer

Q: what is % change in quantity. The price elasticity of demand is 2. The % change in price is equal to...

A: Given price elasticity of demand = 2 Percentage change in price = 5%

Q: When a market is in equilibrium, the total amount of consumer surplus must be--------- the total amo...

A: Consumer surplus:   The consumer surplus means the consumer is willing and able to pay for the goods...

Q: The AW values for retaining a presently owned machine for additional years are shown in the table. N...

A: Economic service life refers to the period of useful life that reduces the corresponding annual cost...

Q: You are a well-paid engineer with a well-established international corporation. In planning for your...

A: Click to see the answer

Q: Top 4 largest firms in the industry produces 750,000 unit while the total production of the Industr...

A: Given that, total production of 4 largest firms will be 750,000 unit and the total production of the...

Q: A market in which there are only a few firm and each is able to influence the market price  is terme...

A: Oligopoly market:   The oligopoly market is the market structure with small number of large seller e...

Q: Four years ago, Valero issued $5 million worth of debenture bonds having a bond interest rate of 10%...

A: Bond price (BP) is $5,000. Face value (FV) is $5,000. Premium (PR) is 10%. Coupon rate (CR) is 10%. ...

Q: Indicate whether each statement is true or false, and justify your answer.Medical experts are ideal ...

A: In the Healthy technology Assessment (HTA) more specifically is involved with the evaluation of an i...

Q: P4 AS2 AS, Aggregate output Y Figure 11.3 Refer to Figure 11.3. Hurricane Katrina destroyed a large ...

A: The aggregate supply curve is the summation of all the individual supply curves in the economy. This...

Q: The diagram depicts a cost curve graph of a price-taking firm that is currently operating and produc...

A: Under perfect competition firms are price takers. The optimum level of output of a perfectly competi...

Q: (i) Use the graph below to explain the output, profit and loss conditions for monopolistically compe...

A: Click to see the answer

Q: What is the correct order of events for the formation of a corporation? A. Novations are executed; A...

A:   the correct answer is B B. Business selects a state of incorporation; Incorporators select a name ...

Q: The above table gives the initial balance sheet for Mega Bank. Mega Bank's desired reserves equal it...

A: Required reserve ratio for Mega bank can be calculated as follows:

Q: Economics Question

A: Hey, Thank you for the question. According to our policy, we can only answer 1 question per session....

Q: Exhibit 8- Suppose that in a recent market period, the following relationship existed between the pr...

A: The goods market is in equilibrium at the point where the demand and supply are equal. The price tha...

Q: Given the above model for an economy C = 100 + 0.8Yd G = 800 T = 500 I = 200 a)Calculate the level o...

A: Calculation of level of savings when economy is in equilibrium: Savings = Y – C Income = C + I + G Y...

Q: Draw a demand curve and label it D1. On the graph, illustrate an increase in demand and a decrease i...

A: Demand analysis is important in economics in order to arrive at equilibrium point where the forces o...

Q: The additional cost of producing one more unit of output is called Variable cost. b. Total cost. C. ...

A: “Hey, since there are multiple questions posted, we will answer first question. If you want any spec...

Q: 10. When a firm produces 50,000 units of output. its total cost equals OMR 65 million. When it incre...

A: The marginal cost refers to the amount of an additional cost incurred in the process of increasing o...

Q: What must an entrepreneur do to earn a profit? How do the actions of firms earning profits influence...

A: An entrepreneur should always remember that its revenue should be higher than its cost in order to e...

Q: Please answer the following question based on Exhibit 11.   Exhibit 11- Cost schedule for a firm ...

A: a). The fixed coast is the cost which remains the same even when the firm produces nothing. Thus, th...

Transcribed Image Text

Potential output is the most that can be produced in an economy at a particular point in time. Select one: O True False