Figure 13-4
-Refer to Figure 13-4.Given the economy is at point A in year 1,what is the difference between the actual growth rate in GDP in year 2 and the potential growth rate in GDP in year 2?
A)0.3%
B)1.1%
C)2.7%
D)3.7%

Question

Figure 13-4 
-Refer to Figure 13-4.Given the economy is at point A in year 1,what is the difference between the actual growth rate in GDP in year 2 and the potential growth rate in GDP in year 2?
A)0.3% 
B)1.1% 
C)2.7% 
D)3.7%

Quizplus · Accepted Answer

The actual growth rate in GDP in year 2 is the movement from point A to point B, which is a 3.3% increase. The potential growth rate is the movement from point A to point C, which is a 0.6% increase. The difference between the actual growth rate (3.3%) and the potential growth rate (0.6%) is 2.7%.

Figure 13-4 -Refer to Figure 13-4.Given the Economy Is at Point a at Point