The level of real GDP in the long run is called
A)potential GDP.
B)short-run GDP.
C)frictional GDP.
D)low-capacity GDP.
E)zero unemployment GDP.

Question

Quizplus · Accepted Answer

Potential GDP is the level of real GDP in the long run when the economy is operating at full employment, which means there is no cyclical unemployment. It is the maximum amount of output an economy can produce with the available resources and technology.

The Level of Real GDP in the Long Run Is