Potential GDP is the same as full employment GDP.

Name: Potential GDP is the same as full employment GDP.
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Question

Quizplus · Accepted Answer

Potential GDP refers to the level of output an economy can achieve when it is operating at full capacity, meaning all resources are being used efficiently, which aligns with the concept of full employment GDP where the economy is producing its maximum output without causing inflation.

Potential GDP Is the Same as Full Employment GDP