How much a country's economy will produce at its potential output is also called:
a. the trough of the business cycle.
b. its economic welfare.
c. the trend line.
d. the natural rate of output.
Question 2
A combination of two goods which lies beyond the production possibilities curve indicates:
a. underutilization of resources.
b. overutilization of resources.
c. constant opportunity costs.
d. a combination that cannot be produced with existing resources.
e. society's most preferred combination of two goods.
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