Potential GDP means the output level when the economy is exp

Potential GDP means the output level when the

economy is experiencing inflation

Solution

Solution-

Potential GDP means the output level when the economy is at full employment.

The correct option is C. economy is at full employment.

Reason-

Potential GDP is the amount of income with full employment of the labor of the economy and physical capital.

Potential GDP means the output level when the economy is experiencing inflation SolutionSolution- Potential GDP means the output level when the economy is at fu

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