Potential GDP Is Estimated to Grow at a Rate of 3.3

question 97

Multiple Choice

Potential GDP is estimated to grow at a rate of 3.3% in the United States.Actual GDP in the U.S.

• A) always grows at a slower rate than potential GDP.
• B) always grows at a faster rate than potential GDP.
• C) always grows at the same rate as potential GDP.
• D) is the same as potential GDP if all firms in the economy were working at capacity.

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Definitions:

Accounts Receivable

Money owed to a business by its customers for goods or services that have been delivered but not yet paid for.

Average Collection Period

The average number of days it takes for a company to receive payments owed by its customers for sales on credit.

Credit Policies

Guidelines that a company follows to determine the creditworthiness of customers, terms of credit, collection procedures, and how much credit to extend.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or used, but not yet paid for.