The sustainable upper limit of real GDP is a level of GDP that is
A) greater than potential GDP,but by how much greater is unknown and controversial.
B) less than potential GDP,but by how much less is unknown and controversial.
C) potential GDP.
D) determined only by what is the full employment equilibrium in the labor market.
E) None of the above answers is correct because there is no sustainable upper limit to real GDP because real GDP can always be increased.
Correct Answer:
Verified
Q16: At full employment,actual _ equals _.
A)nominal GDP;potential
Q17: The Lucas Wedge shows
A)the negative impact a
Q18: The Classical macroeconomic model proposes that
A)government intervention
Q19: The Monetarist model expands the Keynesian model
Q20: If New Zealand is operating at potential
Q22: The _ describes the relationship between the
Q23: Which of the following statement or statements
Q24: A country reports that its actual real
Q25: Over the business cycle,real GDP fluctuates around
A)the
Q26: The idea of "diminishing returns" means that
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents