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:

Genus

A class or group of entities that share a common characteristic distinct from other groups; in taxonomy, a way to categorize species with shared traits.

Concept Definition

Concept definition involves clearly outlining the essential characteristics and defining attributes of a concept to distinguish it from other concepts.

Consistent

A relation between two or more statements that are both true on at least one assignment of truth values to their atomic components.

Metaphorical Uses

Describing a concept or object by using it to refer to something it only resembles in a non-literal, symbolic way.