Actual real GDP will be above potential GDP if

Name: Actual real GDP will be above potential GDP if
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Potential GDP refers to the maximum output an economy can produce with its existing resources and technology. If firms are producing above capacity, it means they are producing more than what the economy is capable of producing with its current resources and technology. This would lead to an actual real GDP that is higher than potential GDP.

Actual Real GDP Will Be Above Potential GDP If