Potential GDP Is the Output That Would Be Produced If

question 118

Multiple Choice

Potential GDP is the output that would be produced if the economy was experiencing:

• A) No unemployment
• B) Free markets and international trade
• C) No inflation
• D) Full employment

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Definitions:

Internal Consistency

The extent to which different test items that propose to measure the same general construct obtain similar scores.

Odd-even Reliability

A measure of internal consistency reliability, where a test is split into odd and even items and the scores are correlated.

Construct Validity

The degree to which a test measures what it claims to be measuring, specifically in terms of whether the test actually assesses the theoretical construct it is designed to measure.

Predictive Validity

The level at which a score from a test or scale forecasts subsequent performance on a connected result.