Potential GDP
A)does not vary with the price level.
B)is the level of real GDP when unemployment is zero.
C)increases as the quantity of money in the economy increases.
D)never changes.
E)increases as the price level rises.

Question

Quizplus · Accepted Answer

Potential GDP is the maximum level of real GDP that an economy can produce with its existing resources, technology, and institutions. It is not affected by changes in the price level.