24 Potential GDP and the Natural Unemployment Rate

A combined photo shows a woman executive at work with a bowl of greens on the left, and a man executive reading a newspaper over coffee on the right.

Why do Americans earn more and produce more than Europeans?

Chapter Checklist

When you have completed your study of this chapter, you will be able to

  1. 1 Explain what determines potential GDP.

  2. 2 Explain what determines the natural unemployment rate.

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