What Is Potential GDP

question 134

Multiple Choice

What is Potential GDP?

• A)The total amount of production an economy produces at equilibrium.
• B)The total amount of production when all of an economy's resources are being fully utilized.
• C)A prediction of what an economy will likely produce in the future.
• D)The total amount of production by an economy,adjusted for inflation.

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Definitions:

Damage Award

A financial compensation granted by a court to indemnify losses or damages suffered by a plaintiff.

Drudgery

Tedious, hard, and repetitive work that is often seen as unenjoyable.

Competitive Factor Markets

Markets where factors of production (like labor, capital) are bought and sold, with many sellers and buyers leading to competitive prices.

Prices

The monetary value assigned to goods and services, determining how much consumers need to pay to obtain them.