Full-employment GDP is also known as
A)realized GDP.
B)potential GDP.
C)politico-economic GDP.
D)balanced-budget GDP.

Question

Quizplus · Accepted Answer

Full-employment GDP is the level of GDP that an economy can achieve when all resources such as labor, capital, and technology are utilized at their maximum potential to produce goods and services. It is also known as potential GDP, as it represents the maximum output an economy can produce without causing inflation. Realized GDP is the actual level of GDP that an economy achieves, which may be below or above potential GDP. Politco-economic and balanced-budget GDP are not commonly used terms in macroeconomics.

Full-Employment GDP Is Also Known as