The result of production exceeding the potential GDP is hyper-intense production will be unsustainable in the long run.
Potential GDP is the GDP of a country when all its resources are fully maximised. Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year.
Production in excess of potential GDP is unsustainable in the long run.
Here are the options to this question:
) higher wages will encourage workers to take more leisure time
B) the long run aggregate supply curve will shift to the right
C) hyper-intense production will be unsustainable in the long run
D) lower prices will lead to a lower quality of demand
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