Potential output can be increased by increasing the use of all inputs or by technical advances.

Name: Potential output can be increased by increasing the use of all inputs or by technical advances.
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Question

Quizplus · Accepted Answer

Potential output, or the maximum output an economy can produce without causing inflation, can be increased either by using more inputs (such as labor, capital, and natural resources) or through technological advances that improve the efficiency of production.

Potential Output Can Be Increased by Increasing the Use of All