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What Is Potential or Full-Employment Output

Question 92

Multiple Choice

What is potential or full-employment output?


A) the maximum GDP that an economy actually achieves throughout its entire history
B) achieved during periods when all of the labour force is employed
C) a goal that can never be achieved by the economy
D) the GDP that would be produced if the economy's resources were fully employed at a normal intensity of use
E) the GDP that could be produced if the economy's resources were fully employed at their maximum intensity of use

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