What is another term for 'potential GDP'?
A) Realised GDP
B) Unemployment GDP
C) Full-employment GDP
D) Balanced-budget GDP

Question

Quizplus · Accepted Answer

Potential GDP refers to the level of real GDP that an economy can achieve when operating at full employment and with all available resources being used efficiently. Therefore, another term for potential GDP is full-employment GDP. The other options are not interchangeable with potential GDP. Realized GDP refers to the actual economic output produced by an economy during a given period, unemployment GDP and balanced-budget GDP are not recognized economic terms.

What Is Another Term for 'Potential GDP