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Which of the Following Is the Formula for the Potential

Question 28

Multiple Choice

Which of the following is the formula for the potential growth rate?


A) The potential growth rate equals the long-term labor force growth rate plus the long-term productivity growth rate.
B) The potential growth rate equals the short-term growth rate plus the long-term aggregate productivity growth rate.
C) The potential growth rate equals the short-term growth rate plus the long-term productivity growth rate.
D) The potential growth rate equals the short-term aggregate growth rate minus the long-term productivity growth rate.

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