What Is Potential GDP

question 157

Multiple Choice

What is potential GDP?

• A)It is the level of real GDP in the long run.
• B)It is the difference between current GDP and maximum GDP.
• C)It is the level of real GDP in the short run.
• D)It is the level of GDP at which inflation is constant.
• E)It is the maximum output possible in a period of time.

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Definitions:

Shocks

In a psychological context, refers to an unexpected or disturbing event that causes emotional distress. In a physical context, it can refer to a sudden and violent blow or impact.

Stressful Experience

An event or situation that triggers significant emotional, physical, or psychological strain or tension in an individual.

Stressor

Any event, experience, or environmental stimulus that causes stress in an individual.

Control

In an experimental setting, the standard by which the test results can be compared; usually a group or condition that does not receive the experimental treatment.