The idea that potential GDP is the sustainable upper limit of production means that
A) real GDP may be temporarily less than potential GDP.
B) unemployment can only temporarily be zero in a healthy economy.
C) inflation must always occur in a growing economy.
D) real GDP may be temporarily larger than potential GDP, but not permanently.
E) the economy is operating environmentally efficiently.
Correct Answer:
Verified
Q115: The Lucas Wedge shows
A)whether a country needs
Q116: The level of real GDP the economy
Q117: More generous unemployment benefits------------- the opportunity cost
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