The maximum quantity that an economy can produce, given its existing levels of labor, physical capital, technology, and institutions, is called:
A. real GDP.
B. potential GDP.
C. aggregate supply.
D. aggregate demand.
Answer:B
The maximum quantity that an economy can produce, given its existing levels of labor, physical capital, technology, and institutions, is called:
A. real GDP. B. potential GDP. C. aggregate supply. D. aggregate demand.
Explanation: Type: Multiple Choice