At any particular point in time, the output of the economy:
A) is fixed because the supplies of capital and labor and the technology are fixed.
B) is fixed because the demand for goods and services is fixed.
C) varies because the supplies of capital and labor vary.
D) varies because the technology for turning capital and labor into goods and services varies.

Question

Quizplus · Accepted Answer

At any particular point in time, the output of the economy is fixed because the supplies of capital and labor and the technology are fixed. These factors determine the production capacity at that moment.

At Any Particular Point in Time, the Output of the Economy