Potential GDP is the value of real GDP when the economy is at full employment.

Order ready-to-submit essays. No Plagiarism Guarantee!

Note:  All our papers are written from scratch by human writers to ensure authenticity and originality.

Potential GDP is the value of real GDP when the
economy is at full employment.
Because the unemployment rate fluctuates around the
natural unemployment rate, real GDP fluctuates around
potential GDP:
• When the unemployment rate is above the natural
rate, real GDP is below potential GDP.
• When the unemployment rate is below the natural
unemployment rate, real GDP is above potential GDP.

Get an Official Turnitin Report for Just $8.99!

Check your paper with the same Turnitin report your professor uses. AI detection + similarity score without storing your work. Pay once, no subscription

Check My Assignment!