Which of these is most likely to reduce the potential output of an economy?

A) An increase in the size of the labor force
B) A deterioration in the quality of the labor force
C) A decrease in the cost of using computers
D) A decrease in the price level
E) An increase in the price level

Potential Output

The highest level of real GDP that can be sustained over the long term without increasing inflation, reflecting the maximum productive capacity of an economy.

Labor Force

The total number of people who are employed and unemployed but seeking work within an economy.

Price Level

The overall cost of goods and services expressed as an index, which helps to compare different periods' economic conditions.