Potential GDP Refers to the Level of

question 223

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.

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Definitions:

Electronic Transactions

Deals or exchanges of goods, services, or information conducted over electronic systems like the Internet or other computer networks.

Prudent Businessperson

An individual who exercises care and diligence in making decisions or taking actions in the context of business operations.

Small Business

An independently owned and operated company that is limited in size and in revenue depending on the industry.

Illegal Contracts

Agreements that are not enforceable by law due to their involvement with illegal activities or being against public policy.