Potential GDP Is Defined as

question 57

Multiple Choice

Potential GDP is defined as

• A)the maximum of GDP that the economy can produce.
• B)the amount of GDP produced if there is no frictional unemployment.
• C)the level of GDP attained when all firms are producing at capacity.
• D)the amount of GDP produced if there is no structural unemployment.

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Definitions:

Evolutionary Perspective

An approach in psychology that explains human behavior and mental processes through the lens of natural selection and survival adaptation.

Compulsive Checking

A behavioral condition where an individual feels the need to repeatedly check things (e.g., door locks, appliances) to alleviate anxiety.

Anxiety

Experiencing anxiety, tension, or discomfort over an event with an unpredictable result.

Reinforcement

In behavioral psychology, any event or stimulus that strengthens or increases the likelihood of a behavior occurring again.