What Is Potential or Full-Employment Output

question 3

Multiple Choice

What is potential or full-employment output?

• A)the maximum GDP that an economy actually achieves throughout its entire history
• B)the level of output achieved during periods when all of the labour force is employed
• C)a target level of income determined by the government
• D)the GDP that would be produced if the economy's resources were fully employed at a normal intensity of use
• E)the GDP that could be produced if the economy's resources were fully employed at their maximum intensity of use