Figure 6.3.1
-Look at the macro production possibilities frontier in Figure 6.3.1. Which point(s) represent real GDP greater than potential GDP?

Name: Figure 6.3.1 -Look at the macro production possibilities frontier in Figure 6.3.1. Which point(s) represent real GDP greater than potential GDP?
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Question

Figure 6.3.1 
-Look at the macro production possibilities frontier in Figure 6.3.1. Which point(s) represent real GDP greater than potential GDP?

Quizplus · Accepted Answer

Point e represents real GDP greater than potential GDP because it lies outside the production possibilities frontier, indicating an output level that exceeds the economy's sustainable capacity.

Figure 6.3.1 -Look at the Macro Production Possibilities Frontier in Figure 6.3.1