In the steady state of the Solow growth model
A) consumption equals depreciation.
B) per capita variables grow at the rate of population growth.
C) aggregate consumption grows at a constant rate.
D) aggregate output is constant.
C
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Potential GDP is
A) another name for real GDP. B) the amount of real GDP that the economy would produce if it were at full employment of all resources. C) the value of the maximum amount of output that can be produced at any given time. D) the amount of real GDP that the economy would produce if the unemployment rate was zero. E) the amount of real GDP that the economy would produce if all unemployment was cyclical unemployment.
Household spending on goods and services is known as
A) consumption spending. B) government purchases. C) net exports. D) planned investment spending.