« previous next »

Author Question: Explain the difference between actual output and potential output. What does the difference between ... (Read 84 times)

nevelica

  • Hero Member
  • *****
  • Posts: 563
on: Jun 30, 2018
Explain the difference between actual output and potential output. What does the difference between these variables represent?
 
  What will be an ideal response?

Question 2

The most important component of the Economic Recovery Act passed by the Bush Administration was ________.
 
  A) the creation of the Federal Reserve discount window
  B) the establishment of the Troubled Asset Relief Program (TARP)
  C) the decrease in taxes for the wealthiest one percent of all Americans
  D) the creation of the Federal Reserve


djofnc

  • Sr. Member
  • ****
  • Posts: 318
Reply #1 on: Jun 30, 2018
Answer to Question 1

Potential output represents the long-run level of output that is potentially achievable if all resources are used to their full utilization. Because potential output is a long-run concept, the difference between actual and potential output represents cyclical, or short-run, deviations in output from what is potentially achievable.

Answer to Question 2

B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

More than one-third of adult Americans are obese. Diseases that kill the largest number of people annually, such as heart disease, cancer, diabetes, stroke, and hypertension, can be attributed to diet.

Did you know?

A recent study has found that following a diet rich in berries may slow down the aging process of the brain. This diet apparently helps to keep dopamine levels much higher than are seen in normal individuals who do not eat berries as a regular part of their diet as they enter their later years.

Did you know?

The tallest man ever known was Robert Wadlow, an American, who reached the height of 8 feet 11 inches. He died at age 26 years from an infection caused by the immense weight of his body (491 pounds) and the stress on his leg bones and muscles.

Did you know?

The first monoclonal antibodies were made exclusively from mouse cells. Some are now fully human, which means they are likely to be safer and may be more effective than older monoclonal antibodies.

Did you know?

In 2010, opiate painkllers, such as morphine, OxyContin®, and Vicodin®, were tied to almost 60% of drug overdose deaths.

Changes that occur during an action potential. Changes that occur during an action potential.
Potential applications of embryonic and tissue specific adult stem cell in cellular and gene theraph Potential applications of embryonic and tissue specific adult stem cell in cellular and gene theraph
This modified model of Easton’s systems theory puts government decision makers as the source of pol This modified model of Easton’s systems theory puts government decision makers as the source of pol
Major Findings of the High Scope Preschool Study High Scope participants showed better academic per Major Findings of the High Scope Preschool Study High Scope participants showed better academic per
Explain how it can be desirable from an intertemporal perspective for a country run a current ... Explain how it can be desirable from an intertemporal perspective for a country run a current ...
Difference between the house and the senate Difference between the house and the senate
Video: Interview with an Anorexic Woman (Part 1 of 2)

For a complete list of videos, visit our video library