Potential GDP refers to
A) the extent to which real GDP is above or below nominal GDP.
B) the difference between the highest level of real GDP per quarter and the lowest level of real GDP per quarter within any given year.
C) the level of GDP attained when all firms are producing at capacity.
D) the level of GDP attained by the country with the highest growth in real GDP in a given year.
C
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The supply curve for a perfectly competitive firm is the portion of its marginal cost curve that lies above its marginal revenue curve
Indicate whether the statement is true or false
In periods when prices are falling, on average,
A) real GDP will grow as fast as nominal GDP. B) real GDP will grow slower than nominal GDP. C) real GDP will grow faster than nominal GDP. D) one cannot calculate real GDP.