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Potential output (also called the natural rate of real output) refers to: A. The quantity of output produced when the prices of all inputs are

Potential output (also called the natural rate of real output) refers to:

A. The quantity of output produced when the prices of all inputs are allowed to fully adjust

B. The quantity of output produced at the intersection of the aggregate demand and aggregate supply curves

C. The quantity of output that would be produced if every member of the labour force worked 40 hours per week

D. The maximum possible output of an economy with no unemployment

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