Potential GDP Is Always Greater Than Real GDP in an Economy

question 171

True/False

Potential GDP is always greater than real GDP in an economy.

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Definitions:

Inefficient

Describes a market or economy in which there are missed opportunities: some people could be made better off without making other people worse off.

Oligopoly

A market structure characterized by a small number of firms dominating the market, leading to limited competition and often higher prices for consumers.

Differentiated Product

A product that is distinct from similar products offered by competitors because of features, branding, quality, or other attributes.

Price Elasticity Of Demand

A measure of how much the quantity demanded of a good responds to a change in price.