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

Question

Quizplus · Accepted Answer

Potential output is determined by factors related to production, such as labor supply, productivity, technology, and inputs. The number of consumers in the market is not directly related to potential output, as it reflects demand rather than supply-side factors. However, it can indirectly affect potential output by influencing firms' decisions to invest in new technology or expand production.

Potential Output Depends on All of the Following Except One