Potential GDP Refers to

question 32

Multiple Choice

Potential GDP refers to

• A)the level of GDP attained when all firms are producing at capacity.
• B)the level of GDP attained by the country with the highest growth in real GDP in a given year.
• C)the difference between the highest level of real GDP per quarter and the lowest level of real GDP per quarter within any given year.
• D)the extent to which real GDP is above or below nominal GDP.

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Definitions:

Standard Hour Plan

A compensation system where employees are paid a set rate for each unit of work completed within a standard timeframe.

Straight Piecework Plan

A pay system where employees are compensated based on the number of units they produce or tasks they complete, directly linking pay to output.

Performance-Vested

Incentive plans where rewards, often in the form of stock options or bonuses, are given to employees based on achieving predefined performance targets.

Time-Based Restricted Stock

A type of stock option granted to employees as part of their compensation, with restrictions that lapse over a certain period of employment.