If actual GDP equals potential GDP, then:
A)the actual unemployment rate is greater than the natural rate of unemployment.
B)the actual unemployment rate equals the natural rate of unemployment.
C)the actual unemployment rate is less than the natural rate of unemployment.
D)there is a recessionary gap.

Question

Quizplus · Accepted Answer

If actual GDP equals potential GDP, there are no output gaps and the economy is at full employment.

If Actual GDP Equals Potential GDP, Then