An Economy's Potential GDP Is Defined as the Level of Output

question 82

Multiple Choice

An economy's potential GDP is defined as the level of output:

• A) that is produced when all factors of production that are willing to be employed are being used.
• B) that is produced when the economy operates at a point under its production possibility
• C) that can be produced when all factors of production are employed in equal proportions.
• D) that is produced in the economy in the short run.

---

Definitions:

Firms

Business entities that produce goods or services with the aim of making a profit.

Complements

Goods or services that are used together, where the consumption or use of one increases the value or demand for the other.

French Fries

Thin strips of deep-fried potatoes, commonly served as a side dish or snack.

Hamburgers

A popular food item consisting of a cooked patty of ground meat, typically beef, placed inside a sliced bun, often served with condiments and toppings.