What is potential GDP? What happens to unemployment when GDP is at its potential?

What will be an ideal response?

Potential GDP is the level of real GDP attained when all firms are producing at capacity. The capacity of a firm is not the maximum output the firm is capable of producing. It is the firm's production when operating on normal hours, using a workforce of normal size. At potential GDP, the economy achieves full employment, and cyclical unemployment is reduced to zero.