Potential GDP is A. the level of GDP that would be produced when firms are operating below capacity. B. sometimes greater, sometimes less, and sometimes equal to actual real GDP. C. always less than actual real GDP. D. always greater than actual real GDP.

Potential gross domestic product (GDP) is equal to the level of GDP that could be attained when all businesses are producing at full capacity. Theoretically the real GDP at its highest possible point would be equal to the potential GDP, but in the real world that is virtually impossible since there is no way all business are 100% efficient.

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Potential GDP is A. the level of GDP that would be produced when firms are operating below capacity. B. sometimes​ greater, sometimes​ less, and sometimes equal to actual real GDP. C. always less than actual real GDP. D. always greater than actual real GDP.

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Potential GDP is A. the level of GDP that would be produced when firms are operating below capacity. B. sometimes greater, sometimes less, and sometimes equal to actual real GDP. C. always less than actual real GDP. D. always greater than actual real GDP.