In the Long Run, Increases in Potential GDP Are Possible

question 18

Multiple Choice

In the long run, increases in potential GDP are possible only if there is

• A)growth in the supply of available factors or growth in factor productivity.
• B)continuous growth in the saving rate.
• C)an increase in the unemployment rate.
• D)an increase in the general price level.
• E)no government interference with the market system.

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