The Sustainable Upper Limit of Real GDP Is a Level

question 76

Multiple Choice

The sustainable upper limit of real GDP is a level of GDP that is

• A)potential GDP.
• B)greater than potential GDP, but by how much greater is unknown and controversial.
• C)less than potential GDP, but by how much less is unknown and controversial.
• D)determined only by what is the full employment equilibrium in the labor market.
• E)None of the above answers is correct because there is no sustainable upper limit to real GDP because real GDP can always be increased.

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Definitions:

Information Technology

The employment of computers, storage systems, networks, and various physical assets, infrastructure, and procedures to generate, process, safeguard, store, and share every type of electronic information.

Step-down Method

An allocation method used in cost accounting to assign overhead costs to different departments based on a hierarchical order.

Labor Hours

The total number of hours worked by employees for which they are compensated, often used as a basis for allocating overhead in cost accounting.

Space Occupied

The amount of physical area taken up by an entity, such as inventory in a warehouse or machinery in a factory.