Another term for full- employment output is:

Question

Quizplus · Accepted Answer

Full-employment output refers to the output level where all available resources in an economy are fully utilized. It is also called potential output, as the economy is operating at its maximum capacity without causing inflationary pressures. Option A is incorrect because maximum output refers to the highest possible output a firm or economy can produce, disregarding the availability of resources. Option C is incorrect because perfectly competitive output refers to a market structure in which firms operate in a highly competitive environment. Option D is incorrect because actual output is the real output produced by an economy, which may or may not be at the full-employment level.

Another Term for Full- Employment Output Is