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?
A) a only
B) b only
C) a, b, c
D) d only
E) e only

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?
A) a only 
B) b only 
C) a, b, c 
D) d only 
E) e only

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