Answer:
Another name for potential GDP, when the economy is producing at its potential and unemployment is at the natural rate of unemployment is called Full employment GDP.
Explanation:
GDP, termed the Gross Domestic product, is the monetary value of all the goods and services made within a country at a specified duration. It generally determines the level of production within a given country, and is often used as an overall measure of a country's economy. The GDP estimates are usually done by the government through the United States Department of Commerce. It is usually determined annually but it can be also released quarterly. A high GDP usually denotes high levels of production within a country, a low GDP is a reflection of low levels of production in the country.
Measures of GDP are divided to various categories as shown;
1. Nominal GDP: when the raw data is taken and measured
2. Real GDP: takes other factors into consideration. For example inflation and also accommodates comparisons between different annual periods
3. GDP growth rate: this is a measure of how much the GDP rises from quarter to quarter
4. GDP per capita: this is measured by taking the total GDP and dividing by the population in the given state.
There are also other terms related to the GDP that are used to define various scenarios involving GDP. An example is the potential GDP, also defined as full employment GDP. It occurs when the economy is producing at its potential and unemployment is at the natural rate of unemployment.
