Potential GDP Is

question 62

Multiple Choice

Potential GDP is

• A)the same as nominal GDP.
• B)the maximum amount of GDP that can be produced while avoiding shortages of labour, capital, land, and entrepreneurship that would bring rising inflation.
• C)the same as real GDP.
• D)equal to nominal GDP multiplied by the price level.
• E)equal to real GDP multiplied by the price level.

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