Potential GDP represents what firms would want to produce in "normal times," when the economy is in neither a recession nor a boom.

Name: Potential GDP represents what firms would want to produce in "normal times," when the economy is in neither a recession nor a boom.
Brand: Quizplus
Rating: 4.8 (45 reviews)

Question

Quizplus · Accepted Answer

Potential GDP refers to the maximum amount of output that an economy can produce when all its resources are used efficiently, in normal times, which means when the economy is not in a recession or at a boom phase.

Potential GDP Represents What Firms Would Want to Produce in "Normal