Figure 24-4
-Refer to Figure 24-4. Given the economy is at point A in year 1, what is the difference between the actual growth rate in GDP in year 2 and the potential growth rate in GDP in year 2?
A) 0.3%
B) 1.1%
C) 2.7%
D) 3.7%

Question

Figure 24-4 
-Refer to Figure 24-4. Given the economy is at point A in year 1, what is the difference between the actual growth rate in GDP in year 2 and the potential growth rate in GDP in year 2?
A) 0.3% 
B) 1.1% 
C) 2.7% 
D) 3.7%

Quizplus · Accepted Answer

The actual growth rate in GDP in year 2 is 3.7%, while the potential growth rate in GDP in year 2 is 1%. The difference between the two is 2.7%.

Figure 24-4 -Refer to Figure 24-4. Given the Economy Is at Point