Potential GDP is the level of
A) real GDP that the economy would produce if it was at full employment.
B) nominal GDP that the economy would produce if it was at full employment.
C) real GDP that the economy would produce if there was no inflation.
D) nominal GDP that the economy would produce if there was no inflation.
E) real GDP that the economy would produce if there was no unemployment.
Correct Answer:
Verified
Q10: The Keynesian macroeconomic model states that
A)the economy
Q11: Potential GDP is
A)equal to the maximum amount
Q12: Potential GDP
A)is the same as real GDP.
B)is
Q13: The level of real GDP the economy
Q14: Suppose that Australia has fully employed all
Q16: At full employment,actual _ equals _.
A)nominal GDP;potential
Q17: The Lucas Wedge shows
A)the negative impact a
Q18: The Classical macroeconomic model proposes that
A)government intervention
Q19: The Monetarist model expands the Keynesian model
Q20: If New Zealand is operating at potential
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents