An economy could produce above its potential GDP for a short period of time by

Question

Quizplus · Accepted Answer

Adding extra shifts of work, such as overtime or night shifts, would increase the level of production and output in the short run, allowing an economy to produce above its potential GDP for a short period of time. However, this may not be sustainable in the long run and could lead to negative consequences such as worker burnout or inefficiencies. The other options - reducing the size of the labor force, increasing the price of final goods and services, and increasing the money supply - are unlikely to result in an increase in production above potential GDP in the short run.

An Economy Could Produce Above Its Potential GDP for a Short