Pregunta
Potential GDP is an estimate of the economy’s ability to produce goods and services if the
a. trade balance is zero.
b. federal budget is balanced.
c. labor force is fully employed.
d. price level is stable.
a. trade balance is zero.
b. federal budget is balanced.
c. labor force is fully employed.
d. price level is stable.
Ask by Edwards Haynes. in the United States
Mar 21,2025
Solución de inteligencia artificial de Upstudy
Respuesta verificada por el tutor
Responder
Potential GDP is estimated when the labor force is fully employed.
Solución
To determine the correct answer, let’s analyze the options in relation to the concept of Potential GDP:
-
a. trade balance is zero.
This statement is not directly related to Potential GDP. Potential GDP focuses on the economy’s production capacity rather than trade balances. -
b. federal budget is balanced.
While a balanced federal budget can have implications for economic stability, it does not directly define the economy’s production capacity. -
c. labor force is fully employed.
This option is closely related to Potential GDP. Potential GDP is often defined as the level of output that an economy can produce when all resources, particularly labor, are fully employed. -
d. price level is stable.
Stability in the price level is important for economic health, but it does not directly define the capacity of the economy to produce goods and services.
Based on this analysis, the correct answer is:
c. labor force is fully employed.
Respondido por UpStudy AI y revisado por un tutor profesional
Como
error msg
Explicar 
Simplifique esta solución The Deep Dive
Potential GDP represents the maximum output an economy can achieve under full employment conditions, meaning that all resources, particularly labor, are utilized efficiently without creating inflationary pressures. It acts as a benchmark for assessing the actual economic performance and guides policymakers in setting fiscal and monetary policies.
To get a deeper understanding of potential GDP, exploring concepts like the business cycle can be enlightening. The business cycle depicts the fluctuations in economic activity over time, showcasing periods of expansion and contraction, which ultimately play a huge role in how potential GDP is measured and interpreted in relation to current GDP figures.
¡Prueba Premium ahora!
¡Prueba Premium y hazle a Thoth AI preguntas de matemáticas ilimitadas ahora!
Quizas mas tarde
Hazte Premium
