Which of the Following Statements About Potential GDP Is True

question 92

Multiple Choice

Which of the following statements about potential GDP is true?

• A)Potential GDP is not equal to the maximum level of real GDP.
• B)Potential GDP is equal to the downward trend in real GDP.
• C)Potential GDP represents the GDP a country will experience when the real interest rate is equal to zero.
• D)Potential GDP represents the long-run tendency of the economy to grow.
• E)Potential GDP is equal to the average level of real GDP.

---

Definitions:

Clean Room

A controlled environment with a low level of pollutants such as dust, airborne microbes, aerosol particles, and chemical vapors, used in scientific research and manufacturing.

Primary Reinforcers

Stimuli that satisfy basic biological needs and are inherently rewarding.

Food

Substances consumed to provide nutritional support for an organism, typically consisting of essential nutrients.

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance that is the main constituent of Earth's streams, lakes, and oceans, and the fluids of most living organisms.