What is Potential GDP?
A)The total amount of production an economy produces at equilibrium.
B)The total amount of production when all of an economy's resources are being fully utilized.
C)A prediction of what an economy will likely produce in the future.
D)The total amount of production by an economy,adjusted for inflation.

Question

Quizplus · Accepted Answer

Potential GDP refers to the maximum amount of production an economy can achieve when all of its resources are being fully utilized, such as when there is full employment and no idle capacity. It represents a theoretical upper limit to the economy's output level.

What Is Potential GDP