Potential GDP Is

question 50

Multiple Choice

Potential GDP is

• A)the maximum amount of GDP that can be produced while avoiding shortages of labour, capital, land, and entrepreneurship that would bring rising inflation.
• B)the same as real GDP.
• C)the same as nominal GDP.
• D)equal to real GDP multiplied by the price level.
• E)equal to nominal GDP multiplied by the price level.

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Definitions:

Unlimited Liability

A legal structure where business owners are personally responsible for all of the company's debts and liabilities.

Partnership Interests

Shares of ownership in a partnership, entitling the partners to a portion of the partnership's profits and losses.

Depository Institution

A financial institution that accepts deposits from individuals and provides loan services.

Investment Bank

A financial institution that provides advisory services, financing, and investment services to individuals, corporations, and governments.