The total amount of output a country could reasonably produce if all of its people and capital resources were fully engaged is called:
A) potential output.
B) full output.
C) positive output gap.
D) economic growth.

Question

Quizplus · Accepted Answer

Potential output is the maximum amount of output a country can produce, given its resources and technology, without putting upward pressure on inflation. It is also known as potential GDP.

The Total Amount of Output a Country Could Reasonably Produce