Potential output refers to:
A) the amount of goods and services the economy has produced during the current period.
B) the amount of goods and services the economy can produce per period, by utilizing available resources at above normal rates.
C) the amount of goods and services the economy can produce per period, by utilizing available resources at the normal rate.
D) the amount of goods and services the economy can produce per period, by utilizing available resources at below normal rates.

Question

Quizplus · Accepted Answer

Potential output is defined as the level of output (goods and services) that an economy can produce when utilizing its resources at a normal rate, avoiding overuse or underuse of its labor, capital, and technological capabilities.

Potential Output Refers To