Answer:
the level of real GDP that exists when the economy is experiencing only frictional and cyclical unemployment.
Explanation:
Potential GDP output is the highest level of real GDP that an economy can achieve over a sustained period of time and at a constant inflation rate. Potential output is reached when the natural rate of unemployment exists.
Natural rate of unemployment = frictional + structural unemployment
An economy can temporarily reach an output level higher than potential, but it will cause a surge in the inflation rate that will soon lower real GDP.
Children have not been taught how to think inside of the box which makes them have outstanding creative thinking
The kind of economy can be matched to their description as :
- The government decides what is produced, along with how much is produced. (Command economy ).
- The government controls some aspects of the economy, such as infrastructure and transportation, while private consumers and producers control the means of production in other areas. (Mixed market economy)
- The government has no involvement or decision-making in what or how much is produced. (Pure market economy)
What is an economy?
An economy can be described as the area of the production as well as the distribution and trade which involves the consumption of goods and services.
It should be noted that it is a social domain that emphasize the practices, discourses, that can be attributed to with the production, as well as management of scarce resources'.
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CHECK THE COMPLETE QUESTION:
Match the term with the type of economy/
the government decides what is produced, along with how much is produced. the government controls some aspects of the economy, such as infrastructure and transportation, while private consumers and producers control the means of production in other areas. the government has no involvement or decision-making in what or how much is produced