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:

Time Savings

The reduction in the amount of time required to complete a task or project, often leading to efficiency improvements.

Total Crash

In project management, the maximum possible reduction in the duration of a project task, typically involving increased costs or resources, to achieve the shortest completion time.

Crash Cost

The additional cost associated with reducing the completion time of a project or activity to its minimum.

Time Savings

The reduction in the amount of time required to complete a task or process, often achieved through increased efficiency.