Which of the following statements best describes the level of potential output in the U.S.?
A) It never changes year to year
B) It is very erratic year to year
C) It usually increases year to year
D) It has been decreasing since 1999

Question

Quizplus · Accepted Answer

Potential output in the U.S. usually increases year to year, although there may be occasional fluctuations due to economic cycles or other factors. There is no evidence to suggest that it has been decreasing consistently since 1999.

Which of the Following Statements Best Describes the Level of Potential