Potential GDP Is

question 100

Multiple Choice

Potential GDP is

• A)a measure of short-term movements in GDP.
• B)another name for GDP.
• C)the upward trend line in real GDP.
• D)another name for real GDP.
• E)another name for aggregate demand.

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Definitions:

Raw Materials

Basic materials that are used in the manufacturing process to produce finished goods.

Budgeted Production

The anticipated volume of products a company plans to produce within a specific period, as part of its budgeting process.

Variable Overhead Rate

The cost per unit of production or activity that fluctuates with the volume of output, like utilities or material handling expenses.

Fixed Manufacturing Overhead

The portion of manufacturing overhead costs that remains constant regardless of the volume of production, such as rent, property taxes, and salaries of permanent staff.