If Real GDP Increases from $14

question 26

Multiple Choice

If real GDP increases from $14.8 trillion one year to $14.9 trillion in the next year, which will be true?

• A)the GDP gap has probably become smaller
• B)economic growth is below the long-term trend rate
• C)economic growth is above the long-term trend rate
• D)economic growth is about the same as the long-term trend rate
• E)both A and C

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Definitions:

Poverty

A condition where individuals lack sufficient financial resources to meet basic living expenses such as food, shelter, and clothing.

Nobel Prizes

Prestigious awards annually given in several categories such as Physics, Chemistry, Medicine, Literature, Peace, and Economic Sciences for significant contributions.

Labor Force

The total number of people employed or actively seeking employment in a given economic region.

Productivity

A measure of the efficiency of production, usually quantified as the ratio of output to inputs in the production process.