Refer to Figure 2-10. In the circular flow diagram, economic agents M represent
A) product markets. B) firms. C) factor markets. D) households.
Question 2
Potential GDP is defined as
A) the amount of GDP produced if there is no structural unemployment.
B) the level of GDP attained when all firms are producing at capacity.
C) the maximum of GDP that the economy can produce.
D) the amount of GDP produced if there is no frictional unemployment.
