Potential GDP Is the Level of Output That Could Be

question 19

True/False

Potential GDP is the level of output that could be produced in an economy if all factors of production were employed.

---

Definitions:

Merit Bonuses

Financial rewards given to employees based on their performance and achievements, typically as a way to incentivize high-quality work.

Performance Appraisal System

The formal mechanism through which employee performance is assessed, feedback is provided, and development goals are set.

Gain Sharing

A performance-based compensation strategy where employees receive financial rewards based on improvements in the company's productivity or profitability.

Group Level Organizational Pay

Compensation strategies that are based on the performance or outcomes of a group or team within the organization.