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According to the theories of macroeconomics, if actual output exceeds potential output, then the output will continue to grow as the price of inputs continues to fall.

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Q: If actual output exceeds potential output eventually what will happen?
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Continue Learning about Economics

When aggregate supply exceeds aggregate demand what will happen to the price level?

The price will go down.


What will happen if everyone expects inflation to occur?

If people expect inflation, they are more inclined to spend than save money which will lose its value. A surge in demand will cause an an increase in prices (because demand exceeds supply) and voila! Inflation.


What factors contribute to the presence of excess supply and excess demand in the market?

Excess supply in a market occurs when the quantity of a good or service supplied exceeds the quantity demanded at a given price. This can happen due to factors such as overproduction, changes in consumer preferences, or a decrease in demand. On the other hand, excess demand occurs when the quantity demanded exceeds the quantity supplied at a given price, which can be caused by factors such as shortages, sudden increases in demand, or price ceilings.


What is the difference between uncertainty and risk?

Uncertainty refers to a lack of knowledge or information about a situation, while risk involves the possibility of harm or loss. Uncertainty is about not knowing what might happen, while risk is about the potential negative outcomes that could occur.


What would happen if a bank goes out of business?

If a bank goes out of business, it could lead to customers losing their deposits and investments. The government may step in to protect depositors through insurance programs, but there could still be disruptions in the financial system and potential economic consequences.

Related questions

What would happen to a rubber band when weight is added to it?

When weight is added to a rubber band, the band will stretch and elongate. If the weight exceeds the band's elasticity, it may eventually break.


What will happen if anabolism are more exceeds than a catabolism?

If anabolism exceeds catabolism, tissues will accumulate excess nutrients leading to potential weight gain and storage of energy as fat. This imbalance can contribute to obesity and other health issues if not managed properly through a balanced diet and exercise.


What happen when stress exceeds the strength of a material?

the material looses its shape


What happen when you get too cold?

When you get to cold the thermal energy in your body starts losing heat which causes blood to eventually not have the potential to circulate and you get purple not be able to move eventually and well you die. yes you can freeze to death so be careful


What part of speech is eventually first?

"Eventually" is an adverb. It describes when something will happen or the way in which something will happen.


When aggregate supply exceeds aggregate demand what will happen to the price level?

The price will go down.


What will happen to a material if the stress applied exceeds the ultimate strength?

hehe of course the material will be deform :)


What does eventually happen to the rope of a pulley system?

It will eventually wear out and break.


What happen after the actual release in the book Giver?

the actual release is when they were injected with a chemical that will kill them


What will happen if percentage of nitrogen exceeds from 79 percent?

The intake of oxygen is lowered, the respiration become difficult, the organism suffer.


What will happen if you step on a scorpion?

The pressure and weight under your foot exceeds the resistance of the scorpions exoskeleton therefore you crush fairly


What is a potential drawback?

A bad thing that might happen