Question

The maximum output that an economy can produce without large increases in inflation is the _____. productive capacity multiplier effect Council of Economic Advisors (CEA) automatic stabilizer

Answer 1

I believe the answer is: Productive Capacity

Currently, there is no international regulation which limit the production capacity that country can have.

So, The Productive Capacity that a nation have would be affected by the number of population, their purchasing power, and the resources that the nation have.

Answer 2

The maximum output that an economy can produce without large increases in inflation is the productive capacity. The correct option among all the options that are given in the question is the first option. As per the United Nations Conference on Trade and Development, there is no perfect definition of maximum output exists.