When the Growth Rates of Actual and Potential GDP Diverge

question 181

Multiple Choice

When the growth rates of actual and potential GDP diverge, they usually diverge because

• A)actual GDP growth equals potential GDP growth.
• B)actual GDP growth falls below potential GDP growth.
• C)potential GDP growth rates fall below actual GDP growth rates.
• D)potential GDP growth rates fluctuate while actual GDP growth rates remain stable.

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