If the economy's actual GDP is greater than its potential GDP, then there is high unemployment in
that economy.

Name: If the economy's actual GDP is greater than its potential GDP, then there is high unemployment in that economy.
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Question

Quizplus · Accepted Answer

If the economy's actual GDP is greater than its potential GDP, it means that the economy is producing more than its maximum capacity. This can lead to inflationary pressures and may indicate that the economy is operating at or near full employment.

If the Economy's Actual GDP Is Greater Than Its Potential