Potential GDP Refers to the Level of

question 88

Multiple Choice

Potential GDP refers to the level of

• A)real GDP in the long run.
• B)nominal GDP in the long run.
• C)real GDP in the short run.
• D)nominal GDP in the short run.
• E)the maximum real GDP possible.

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Definitions:

Voidable Contract

A contract that appears valid but may be legally declared void at the discretion of one of the parties due to factors like fraud, coercion, or incapacity.

Privity of Contract

A legal principle which holds that only parties to a contract can sue or be sued on that contract, highlighting the direct relationship involved.

Void Contract

A legal agreement that is invalid from the outset and has no legal effect, therefore cannot be enforced by law.

Voidable Contract

A legal agreement that may be invalidated or annulled by one or more of the parties involved due to certain conditions.