What Is Another Term for 'Potential GDP

question 107

Multiple Choice

What is another term for 'potential GDP'?

• A)realised GDP
• B)unemployment GDP
• C)full-employment GDP
• D)balanced-budget GDP

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Definitions:

Investment Accelerator

An economic theory suggesting that an increase in national or private investment spending stimulates overall economic growth, potentially leading to further increases in investment.

Investment

The act of allocating resources, usually money, with the expectation of generating an income or profit.

Government Expenditures

The total amount spent by the government for its operations, public services, and social welfare programs.

Aggregate Spending

The total spending on goods and services in an economy at a given overall price level and in a given time period.