Which of these is most likely to reduce the potential output of an economy?
A)An increase in the size of the labor force
B)A deterioration in the quality of the labor force
C)A decrease in the cost of using computers
D)A decrease in the price level
E)An increase in the price level

Question

Quizplus · Accepted Answer

A deterioration in the quality of the labor force, such as a decrease in education or skill levels, would lead to a decrease in productivity and efficiency, ultimately reducing the potential output of an economy.

Which of These Is Most Likely to Reduce the Potential