Potential output is the level of real GDP that: a) occurs when the economy has only cyclical unemployment. b) the economy would produce if all prices, including nominal wages, were fully flexible. c) occurs when the actual rate of unemployment is zero. d) the economy would produce if all prices, including nominal wages, were sticky.

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11 April, 03:05

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Ernesto Rangel · Answer 1

Answer: B.

The economy would produce if all prices, including nominal wages, were fully flexible