An Estimate for the Value of Potential GDP Can Be

question 15

Multiple Choice

An estimate for the value of potential GDP can be generated by observing and recording

• A)the economy's total supply of factors, their normal rates of utilization, and factor productivity.
• B)the economy's total output, its total cost and demand for that output.
• C)the economy's total supply of factors, the costs of those factors, and their productivity.
• D)the total available capacity for production in the Canadian economy.
• E)the level of actual GDP when the unemployment rate is zero.

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Definitions:

Inventory Flow

The process by which inventory moves through a business, from purchase and storage to sale.

Periodic Inventory System

An inventory accounting system where updates to inventory accounts occur at specific intervals, typically at the end of an accounting period.

LIFO

An inventory valuation method where the last items added to inventory are considered the first ones sold during a period of time; stands for Last-In, First-Out.

FIFO

An accounting method for inventory valuation where the first items acquired are the first ones sold, standing for First In, First Out.