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Potential or Full- Employment Output Is

Question 59

Multiple Choice

Potential or full- employment output is


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) the GDP that would be produced if the economy's resources were fully employed at a normal intensity of use.
D) the GDP that could be produced if the economy's resources were fully employed at their maximum intensity of use.
E) a goal that can never be achieved by the economy.

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