If Real GDP Stays Below Potential GDP

question 39

Multiple Choice

If real GDP stays below potential GDP,

• A)the AD curve will begin to shift to the left.
• B)the IA line will shift down.
• C)potential GDP will decline.
• D)the IA line will shift up.
• E)the AD curve will begin to shift to the right.

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Definitions:

Descriptive Approaches

Methods or strategies focused on describing and understanding phenomena rather than predicting or manipulating them.

Ethical Issues

Challenges or dilemmas that require individuals or organizations to consider moral principles in their decision-making processes.

Normative

Refers to standards or norms that dictate what actions or ideas are right and wrong, often applied in ethical, legal, and societal contexts.