Potential GDP Would Increase If

question 65

Multiple Choice

Potential GDP would increase if

• A)the rate of capital depreciation increased.
• B)the labor force decreased.
• C)the price level grew.
• D)the rate of capital growth increased.

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Definitions:

Market Economy

An economic system where supply and demand from consumers direct the production of goods and services and determine their prices.

Goods And Services

Refers to the tangible products and intangible services that are produced and consumed within an economy.

Central Planning

An economic system in which decisions about production, investment, and distribution are made by a central authority, typically in a government.

Income

The amount of money received over a period of time, usually from work, investments, or business activities.