The total amount of goods and services that could be produced if the economy were at full employment is called the
A) business cycle.
B) price level.
C) potential GDP.
D) GDP deflator.
E) aggregate demand curve.

Question

Quizplus · Accepted Answer

Potential GDP refers to the total amount of goods and services that an economy could produce if all its resources were fully employed. This level of output is considered to be the maximum sustainable level of output for an economy in the long run.

The Total Amount of Goods and Services That Could Be