Potential GDP Is

question 113

Multiple Choice

Potential GDP is

• A)the value of the maximum amount of output that can be produced at any given time.
• B)the amount of real GDP that the economy would produce if it were at full employment of all resources.
• C)another name for real GDP.
• D)the amount of real GDP that the economy would produce if the unemployment rate was zero.
• E)the amount of real GDP that the economy would produce if all unemployment was cyclical unemployment.

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Definitions:

Conduct Business

The act of engaging in activities or operations that relate to the buying, selling, or providing of goods or services.

Sole Proprietor

is a business owned and operated by a single individual, where there is no legal distinction between the owner and the business entity.

Corporation

A legal entity that is separate from its owners, providing limited liability, and is able to own property, incur debt, sue and be sued.

General Partner

An owner of a partnership who is responsible for its operations and is liable for its debts without limitation.