The rate of output at which the price level has no tendency to rise or fall is called the
A)natural rate of output.
B)potential level of income.
C)bliss point.
D)efficient level of output.

Question

Quizplus · Accepted Answer

The rate of output at which the price level has no tendency to rise or fall is called the natural rate of output. This is the level of output where there is no pressure on prices to increase or decrease, and the economy is operating at full employment of resources.

The Rate of Output at Which the Price Level Has