Question

What term is used to describe the maximum quantity that an economy can produce, in the context of its existing inputs, market and legal institutions?

Answer 1

Answer:

Potential GDP

Explanation:

In the OECD Economic Outlook publication the potential gross domestic product (GDP) is defined as the output level that a continuously inflating economy can generate. Even though an economy can generate more momentarily than its potential output, it's at the expense of increasing inflation.