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Question #47089

Potential GDP is the level of aggregate output ?

Options:

A) that can be produced if structural unemployment is zero

B) that can be produced at a zero-unemployment rate

C) that can be sustained in the long run without inflation

D) that can be sustained in the long run, if the inflation rate is zero

Answer: Potential GDP is the level of aggregate output that can be sustained in the long run without inflation.

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