Potential GDP is:
A) minimum amount of output that can be produced given the labor force, capital stock, and technology.
B) maximum amount of output that can be produced given the labor force, capital stock, and technology.
C) varies over the business cycle.
D) none of the above.
Correct Answer:
Verified
Q1: Potential GDP focuses on the:
A)long-run supply side
Q2: The sum of personal consumption expenditure,investment expenditure,government
Q3: A lower real interest rate,amount of consumer
Q4: An index based on a mail survey
Q6: Short-run macroeconomic policies concentrate on:
A)minimizing fluctuations around
Q7: Long-run macroeconomic policies concentrate on:
A)minimizing fluctuations around
Q8: The nominal interest rate is 7 percent
Q9: The marginal propensity to consume is defined
Q10: Measuring expenditures and income with the price
Q11: Comparing the situation of a nominal interest
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