Question: Potential (or full-employment) output is... a.The maximum GDP that an economy actually achieves throughout its entire history. b.The GDP that could be produced if the

Potential (or full-employment) output is...

a.The maximum GDP that an economy actually achieves throughout its entire history.

b.The GDP that could be produced if the economy's resources were fully employed at a normal intensity of use.

c.A target level of income the government determines.

d.The level of output achieved during periods when all of the labour force is employed.

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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