The size of potential GDP, or full-employment real GDP, depends on physical capital per person (worker in the economy) human capital per person advances in technology all of the above
Added by Natasha D.
Close
Step 1
Step 1: Potential GDP is the maximum output an economy can produce when all resources are fully employed. Show more…
Show all steps
Your feedback will help us improve your experience
Haricharan Gupta and 99 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
The long-run aggregate supply curve shifts right if immigration from abroad increases. the capital stock increases. technology advances. All of the above are correct.
Haricharan G.
The long-run aggregate supply curve shifts right if Answer immigration from abroad increases. the capital stock increases. technology advances. All of the above are correct.
An article in the Economist noted that "the economy's potential to supply goods and services [is] determined by such things as the labour force and capital stock, as well as inflation expectations" Do you agree with this list of the determinants of potential GDP? Briefly explain.
Aggregate Demand and Aggregate Supply Analysis
Aggregate Supply
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
Watch the video solution with this free unlock.
EMAIL
PASSWORD