Potential GDP is the level of
A) GDP that fluctuates around actual GDP.
B) GDP that would be produced if all workers were fully employed and there was no unemployment.
C) GDP that is impossible to achieve.
D) nominal GDP that is smaller than the real GDP.
E) real GDP that the economy could produce at full employment.
Correct Answer:
Verified
Q4: The labor force participation rate
A)increases as the
Q5: Q6: The amount of real GDP produced at Q7: The more generous the amount of unemployment Q8: Over the business cycle, real GDP fluctuates Q10: An increase in the time spent on Q11: According the Keynesian macroeconomic model, which of Q12: The supply of labor is defined as Q13: If the government increases unemployment benefits, then Q14: Potential GDP is
A)the level of output produced
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents