Question Details

Potential GDP is



1) The maximum amount of production that can be produced while avoiding shortages of labor,
capital, land, and entrepreneurship that would bring rising inflation is called
A) real GDP.
B) nominal GDP.
C) actual GDP.
D) potential GDP.
2) Potential GDP is
A) another name for real GDP.
B) always different from real GDP.
C) the level of GDP not adjusted for price changes.
D) the maximum amount of GDP that can be produced while avoiding shortages of labor,
capital, land, and entrepreneurship that would bring rising inflation.
3) Potential GDP is
A) the maximum GDP that an economy actually achieves throughout its entire history.
B) the level of GDP achieved during periods when 100 percent of the labor force is employed.
C) a goal that can never be achieved by the economy.
D) the maximum amount of GDP that can be produced while avoiding shortages of labor,
capital, land, and entrepreneurship that would bring rising inflation.
4) Potential GDP is the
A) the maximum amount of production that can be produced while avoiding shortages of
labor, capital, land, and entrepreneurship that would bring rising inflation.
B) current value of production in the economy.
C) value of production when the economy is in a recession.
D) value of production when the economy is at a peak.
5) Potential GDP
A) measures the actual production from year to year.
B) measures the maximum amount of production that can be produced while avoiding
shortages of labor, capital, land, and entrepreneurship that would bring rising inflation.
C) is cyclical.
D) Both answers A and C are correct




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