Potential GDP is
A)a measure of short-term movements in GDP.
B)another name for GDP.
C)the upward trend line in real GDP.
D)another name for real GDP.
E)another name for aggregate demand.

Question

Quizplus · Accepted Answer

Potential GDP represents the maximum level of output an economy can produce over a sustained period of time. It is often depicted as the upward trend line in real GDP, representing the long-term growth trend of the economy.

Potential GDP Is