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:

Environmentally Friendly Products

Products designed to minimize negative effects on the environment through sustainable practices, less pollution, and conservation of resources.

New Ecological Paradigm

Emphasizes that modern industrial society is beginning to exceed the limits of the environment.

Ecosystem Processes

The natural cycles and exchanges of energy and nutrients that sustain environments and the organisms within them.

Sustainable Development

The belief that economic development can occur without damaging the environment.