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

The number of consumers in the market does not directly affect potential output. Potential output is determined by factors such as the supply of labor, labor productivity, household choices regarding labor and leisure, and the technology in use. The number of consumers in the market can affect actual output and demand for goods and services, but not potential output.

Potential Output Depends on All of the Following Except One