Potential GDP Is Defined as the Level of Aggregate Output

Multiple Choice

Potential GDP is defined as the level of aggregate output at which

A) there is only cyclical and frictional unemployment, and capital equipment is being used at 100 percent capacity.
B) all factors of production are employed at their "normal" utilization rates.
C) the unemployment rate is zero.
D) there is only cyclical and structural unemployment.
E) all factors of production are employed at 100 percent capacity.