Economists refer to full-employment output as
A) GDP per capita.
B) natural GDP.
C) real GDP.
D) nominal GDP.
E) potential GDP.

Question

Quizplus · Accepted Answer

Full-employment output is the level of output that the economy can produce at full employment of its available resources. This is also referred to as potential GDP, which is the maximum level of output that an economy can sustainably produce given its existing resources and technology. Therefore, option E is the correct choice.

Economists Refer to Full-Employment Output as