Potential GDPSelect one:A. never changes.B. increases as the price level rises.C. is the level of real GDP when unemployment is zero.D. does not vary with the price level.E. increases as the quantity of money in the economy increases.

option D. Does not vary with price level. Is the correct answer.

Answered: r changes. ases as the price level…

r changes. ases as the price level rises. e level of real GDP when unemployment is zero. not vary with the price level. ases as the quantity of money in the economy increases.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter15: Measuring A Nation's Income

Section: Chapter Questions

Problem 6CQQ

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Question

Potential GDP
Select one:
A. never changes.
B. increases as the price level rises.
C. is the level of real GDP when unemployment is zero.
D. does not vary with the price level.
E. increases as the quantity of money in the economy increases.

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