Asked by Eugene Dioso on May 10, 2024
Verified
Which of the following is most likely to shift the potential output of an economy to the right?
A) A decline in the length of the average workweek
B) An increase in the supply of educated and skilled workers
C) A drought
D) An increase in aggregate demand
E) An increase in the minimum wage received by workers
Potential Output
The maximum amount of goods and services an economy can produce when it is most efficiently utilizing all of its resources.
Skilled Workers
Employees who have specialized training, expertise, knowledge, and abilities in their fields of work.
Aggregate Demand
The overall requirement for every good and service in an economy, measured at a particular price level and within a designated timeframe.
- Understand the concept of potential output and how it is affected by economic factors.
- Discern the influences leading to alterations and migrations along the long-run aggregate supply curve.
Verified Answer
Learning Objectives
- Understand the concept of potential output and how it is affected by economic factors.
- Discern the influences leading to alterations and migrations along the long-run aggregate supply curve.
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