Potential GDP Is the Value of GDP That Can Be

question 35

Multiple Choice

Potential GDP is the value of GDP that can be calculated if we assume that

• A)there are no measurement errors
• B)the unemployment rate is zero
• C)the inflation rate is zero
• D)GDP has been adjusted for inflation
• E)the capital stock is working at full capacity and we have full employment

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Definitions:

Fifth Amendment

Refers to a part of the U.S. Constitution that protects individuals against self-incrimination, ensures due process of law, and provides protections against double jeopardy among other rights.

Caveat Emptor

A Latin term meaning "let the buyer beware," indicating that the buyer is responsible for checking the quality and suitability of goods before a purchase is made.

Let the Buyer Beware

A traditional caveat in commerce, indicating that the buyer assumes the risk regarding the quality and condition of the product being sold.

Suppressio Veri

The legal term for the suppression of the truth or withholding relevant information.