Potential GDP refers to A) the extent to which real GDP is ...

[jace]

Potential GDP refers to
 
  A) the extent to which real GDP is above or below nominal GDP.
  B) the difference between the highest level of real GDP per quarter and the lowest level of real GDP per quarter within any given year.
  C) the level of GDP attained when all firms are producing at capacity.
  D) the level of GDP attained by the country with the highest growth in real GDP in a given year.

Question 2

Refer to Figure 2-2. If Mendonca chooses to produce 120 pounds of meat, how much vegetables can it produce to maximize production?
 
  A) 0 pounds of vegetables B) 60 pounds of vegetables
  C) 100 pounds of vegetables D) 160 pounds of vegetables

[patma1981]

Answer to Question 1

C

Answer to Question 2

A