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'Potential GDP' Is Defined as The

Question 28

Multiple Choice
'Potential GDP' is defined as the:

'Potential GDP' is defined as the:


A) maximum level of GDP that the economy can produce.
B) amount of GDP produced if there is a zero rate of unemployment.
C) level of GDP attained when all firms are producing at capacity.
D) amount of GDP produced when the economy is in equilibrium.

Correct Answer:

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