What Is Potential GDP

question 227

Multiple Choice

What is potential GDP?

• A)It is the level of real GDP in the long run.
• B)It is the difference between current GDP and maximum GDP.
• C)It is the level of real GDP in the short run.
• D)It is the level of GDP at which inflation is constant.

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Definitions:

Direct Contact

involves interaction between individuals or entities without intermediaries, allowing for immediate communication or exchange.

Communication

The process of exchanging information and ideas between individuals or entities, often involving speaking, writing, or using other mediums.

Legitimate Power

The authority derived from a formal position or role in an organization, which allows someone to influence others.

Supplier

A supplier is an entity that provides goods or services to another organization, playing a crucial role in the supply chain by influencing product quality, costing, and availability.