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:

Par Value

A nominal value assigned to a share of stock as indicated in the corporate charter, not necessarily reflecting its market value.

Yield

The income return on an investment, such as the interest or dividends received, expressed annually as a percentage based on the investment's cost, its current market value, or its face value.

Quoted Price

The last price at which a security or commodity traded, often used as a reference to gauge market value.

Current Yield

The annual income (interest or dividends) divided by the current price of the security.