A recession will occur if an economy's actual GDP ____ its potential GDP.

Name: A recession will occur if an economy's actual GDP ____ its potential GDP.
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A recession occurs when the actual GDP (what a country is producing) falls below its potential GDP (what it could be producing if all resources and factors were utilized to their maximum potential). This results in a decline in economic activity, including job losses, reduced consumer spending, and decreased investment.

A Recession Will Occur If an Economy's Actual GDP ____