Which of the following can alter the potential level of output?
A) changes in the actual price level
B) changes in the expected price level
C) changes in real GDP
D) changes in a nation's stock of capital

Question

Which of the following can alter the potential level of output?  
A) changes in the actual price level 
B) changes in the expected price level 
C) changes in real GDP 
D) changes in a nation's stock of capital

Quizplus · Accepted Answer

Changes in a nation's stock of capital can alter the potential level of output by affecting the productive capacity of the economy. Increases in capital stock, such as machinery, buildings, and technology, can enhance productivity and increase the potential output.

Which of the Following Can Alter the Potential Level of Output