In any year, real GDP
A) must always be less than potential GDP.
B) might be greater or less than potential GDP.
C) will be greater than potential GDP if the inflation rate is positive.
D) always equals potential GDP.

Question

Quizplus · Accepted Answer

Real GDP can either exceed or fall short of potential GDP depending on various economic factors such as demand, supply, and external shocks. Potential GDP represents an economy's maximum sustainable output level, while real GDP is the actual output.

In Any Year, Real GDP