Author Question: Potential GDP is A) another name for real GDP. B) the amount of real GDP that the economy would ... (Read 78 times)

anshika · **on:** Jun 29, 2018

Potential GDP is

A) another name for real GDP.
B) the amount of real GDP that the economy would produce if it were at full employment of all resources.
C) the value of the maximum amount of output that can be produced at any given time.
D) the amount of real GDP that the economy would produce if the unemployment rate was zero.
E) the amount of real GDP that the economy would produce if all unemployment was cyclical unemployment.

Question 2

Referring to Figure 19.2, the effect of a decrease in U.S. interest rates is represented by a movement from point

A) b to c. B) c to d. C) d to a. D) c to b.