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.
A
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When the inflation rate is zero, the
A) real interest rate is greater than the nominal interest rate. B) real interest rate is less than the nominal interest rate. C) nominal interest rate is zero. D) real interest rate equals the nominal interest rate.
Generally, most of the world’s industrial countries believe that central banks should be independent of their governments.
Answer the following statement true (T) or false (F)
When an investor buys a corporate bond, the ________ is a loan to the corporation
A) principal of the bond B) bond's dividend payments C) interest on the bond D) coupon payment
In an economy, the value of inventories fell by $50 billion from year 1 to year 2. In calculating total investment for year 2, national income accountants would increase it by $50 billion.
Answer the following statement true (T) or false (F)