The maximum amount of production that can be produced while avoiding shortages of labor, capital, land, and entrepreneurship that would bring rising inflation is called
A) real GDP.
B) nominal GDP.
C) actual GDP.
D) potential GDP.
D
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Which of the following is an example of an automatic stabilizer?
a. Decrease in tax rates by Congress in times of unemployment b. Decrease in tax rates by Congress in times of inflation c. Increase in government defense spending during war d. Increase in unemployment compensation during recession e. Decrease in welfare programs during inflation
The fixed amount that the issuer of a bond agrees to pay the bondholder each year until the bond matures is called:
a. rent. b. coupon. c. interest. d. load. e. dividend.
Most people rely primarily on income other than their labor earnings to maintain their standard of living
a. True b. False Indicate whether the statement is true or false
Suppose a tax of $5 per unit is imposed on a good. The supply curve is a typical upward-sloping straight line, and the demand curve is a typical downward-sloping straight line. The tax decreases consumer surplus by $10,000 and decreases producer surplus by $15,000 . The deadweight loss of the tax is $2,500 . The tax decreased the equilibrium quantity of the good from
a. 6,500 to 5,500. b. 5,500 to 4,500. c. 5,000 to 3,000. d. 6,000 to 4,000.