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The Gap in Potential GDP in the United States Versus

Question 53

Multiple Choice

The gap in potential GDP in the United States versus Europe can be explained by the fact that


A) U.S. labor is more productive than European labor.
B) prices are higher in the United States.
C) the Okun Gap is larger in the United States.
D) income taxes are higher in the United States.
E) equilibrium employment is higher in Europe.

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