Can actual real GDP exceed potential GDP?
What will be an ideal response?
Yes, actual real GDP temporarily can exceed potential GDP as the economy nears a business cycle peak.
Economics
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Economic growth is shown on the production possibilities frontier as
A) a movement from one point on the PPF to another. B) an outward shift in the PPF. C) an inward shift in the PPF. D) the curvature of the PPF.
Economics
If the U.S. government runs a budget deficit (G ? T), that deficit must be financed by an excess of
a. T over G. b. C over T plus G. c. investment by American businesses and individuals. d. S over I by American businesses and individuals, or by borrowing from foreigners.
Economics