Multiple Choice
The relationship between real GDP and potential GDP over the business cycle can be best summarized by which of the following statements?
A) Real GDP fluctuates around potential GDP.
B) Real GDP is always equal to potential GDP.
C) Real GDP cannot be greater than potential GDP.
D) Real GDP cannot be less than potential GDP.
E) Real GDP cannot be equal to potential GDP.
Correct Answer:
Verified
Correct Answer:
Verified
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