Which of the Following About Potential GDP Is True

Multiple Choice

Which of the following about potential GDP is true?

A) During a recession, actual GDP will exceed potential GDP.
B) Actual GDP cannot exceed potential GDP, even for short periods.
C) Actual output may be either above or below potential output depending on how fully resources are utilized.
D) The economy's potential output is the maximum output that could be achieved temporarily during a time of economic boom.