Potential GDP refers to a. the level of output that an economy can produce when all resources (land, labor, capital, and entrepreneurial ability) are fully employed. b. the level of output that an economy can produce when all resources (land, labor, capital, and entrepreneurial ability) are not fully employed. c. an abstract conception developed by economists. d. an unreal expectation of the government.

Potential GDP is an estimation of the value of GDP by an economist or a theoretical construct by an…

Answered: Potential GDP refers to a. the level…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Potential GDP refers to

	a. the level of output that an economy can produce when all resources (land, labor, capital, and entrepreneurial ability) are fully employed.
	b. the level of output that an economy can produce when all resources (land, labor, capital, and entrepreneurial ability) are not fully employed.
	c. an abstract conception developed by economists.
	d. an unreal expectation of the government.

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