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

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Quizplus · Accepted Answer

Potential GDP represents the maximum amount of production that an economy can produce without causing inflationary pressure from shortages of labor, capital, land, and entrepreneurship. It is a measure of the economy's full capacity output. Real GDP, actual GDP, and nominal GDP all refer to the value of goods and services produced in an economy, but they do not take into account the economy's full capacity output.

The Maximum Amount of Production That Can Be Produced While