Potential GDP is the maximum output that an economy can produce with fully employed resources. It represents the level of production that can be achieved when all factors of production are being used to their full capacity, including labor, capital, and technology.

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Potential GDP Is the

Question 188

Multiple Choice

Potential GDP is the

A) value of production when the economy is in a recession.
B) the value of production with fully employed resources.
C) current value of production in the economy.
D) value of production when the economy is at a peak.

Correct Answer: