Which of the following statement or statements are correct about potential GDP?
i. Actual real GDP equals potential GDP when the economy is at full employment.
ii. Real GDP can be less than potential GDP.
iii. When real GDP equals potential GDP, it also equals nominal GDP.
A) i only
B) ii only
C) ii and iii
D) i and ii
E) i, ii, and iii
D
You might also like to view...
In one day, Brandon can either plow 10 acres or plant 20 acres. In one day, Christopher can either plow 14 acres or plant 14 acres. Brandon and Christopher can
A) gain from exchange if Brandon specializes in planting and Christopher specializes in plowing. B) gain from exchange if Brandon specializes in plowing and Christopher specializes in planting. C) exchange, but only Brandon will gain from the exchange. D) exchange, but only Christopher will gain from the exchange.
What happens to the present value of $1 one year from now if the market rate of interest falls? Explain
What will be an ideal response?