Explain what determines potential GDP. A.The Three Main Schools of Thought 1. Classical.I have a final homework due at 10am tomorrow morning. I will be recieving the homework at 8am Pacific Los Angeles time. MacroeconomicsI have a final homework due at 10am tomorrow morning. I will be recieving the homework at 8am Pacific Los Angeles time. It covers 6 chapters of econ information. I have posted an outline of what might be covered in the homework below.Chapter 141. Define GDP and explain why the value of production, income, and expenditure are the same for an economy. A.GDP Defined 1. Value Produced 2. What Produced 3. Where Produced 4. When Produced B.Circular Flows in the U.S. Economy 1. Consumption Expenditure 2. Investment 3. Government Expenditure on Goods and Services 4. Net Exports of Goods and Services 5. Total Expenditure 6. Income C.Expenditure Equals Income 2. Describe how economic statisticians measure GDP and distinguish between nominal GDP and real GDP. A.The Expenditure Approach 1. Expenditures Not in GDP B.The Income Approach 1. Wage Income 2. Interest, Rent, and Profit Income 3. From Factor Cost to Market Price 4. From Net to Gross 5. Statistical Discrepancy C.GDP and Related Measures of Production and Income 1. Gross National Product 2. Disposable Personal Income D.Real GDP and Nominal GDP E.Calculating Real GDP F. Using the Real GDP Numbers 3. Describe the uses of real GDP and explain its limitations as a measure of the standard of living. A.The Standard of Living Over Time B. Tracking the Course of the Business Cycle C. The Standard of Living Among Countries D.Goods and Services Omitted from GDP 1. Household Production 2. Underground Production 3. Leisure Time 4. Environment Quality E.Other Influences on the Standard of Living 1. Health and Life Expectancy 2. Political Freedom and Social JusticeChapter 151. Define the unemployment rate and other labor market indicators. A.Current Population Survey B.Population Survey Criteria C.Two Main Labor Market Indicators 1. The Unemployment Rate 2. The Labor Force Participation Rate D.Alternative Measures of Unemployment 1. Marginally Attached Workers 2. Part-Time Workers 2. Describe the trends and fluctuations in the indicators of labor market performance in the United States. A.Unemployment Rate B.The Participation Rate 3. Describe the sources and types of unemployment, define full employment, and explain the link between unemployment and real GDP. A.Frictional Unemployment B.Structural Unemployment C.Cyclical Unemployment D.“Natural” Unemployment 3. The Real Wage Rate 4. Unemployment BenefitsChapter 161. Explain what the Cons