If Real GDP Is Greater Than Potential GDP

question 123

Multiple Choice

If real GDP is greater than potential GDP,

• A)the rate of inflation will not change.
• B)the price level will not change.
• C)the rate of inflation will decrease.
• D)the price level will fall.
• E)the rate of inflation will increase.

---

Definitions:

Pure Capacitive Circuit

An electrical circuit that contains only capacitors, with no resistance or inductance to affect the flow of current.

Discharging

The process by which a battery or capacitor releases its stored electrical energy.

Reactive Power

The component of electrical power that oscillates between the source and load, associated with magnetic and electric fields, measured in Volt-Amps Reactive (VAR).

Impressed Voltage

The voltage applied across a circuit or component, not necessarily resulting from direct contact.