Scarcity affects only those who are in need. Indicate whether ...

[2125004343]

Scarcity affects only those who are in need.
 
  Indicate whether the statement is true or false

Question 2

What is potential GDP and what is the relationship between actual and potential real GDP?
 
  What will be an ideal response?

[firehawk60]

Answer to Question 1

FALSE

Answer to Question 2

The quantity of GDP at full employment is called potential GDP. Over the business cycle, real GDP fluctuates around potential GDP. When the unemployment rate is higher than the natural rate, real GDP is less than potential GDP and when the unemployment rate is lower than the natural rate, real GDP exceeds potential GDP.

[2125004343]

Thanks for the timely response, appreciate it

[aliotak]

Wow, this really help