What Is Another Term for 'Potential GDP

question 22

Multiple Choice

What is another term for 'potential GDP'?

• A) Realised GDP
• B) Unemployment GDP
• C) Full-employment GDP
• D) Balanced-budget GDP

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Definitions:

Velocity of Circulation

The rate at which money moves through the economy, from transactions of individuals and businesses.

Unemployment Rate

A measure of the percentage of the labor force that is jobless and actively looking for employment.

Expansionary Monetary Policy

A policy by central banks to increase the money supply and decrease interest rates to stimulate economic growth.

Keynesian Economist

An economist who believes in Keynesian economics, which advocates for increased government expenditures and lower taxes to stimulate demand and pull the global economy out of depression.