Which of the Following Does Not Occur When Real GDP

question 85

Multiple Choice

Which of the following does not occur when real GDP rises above potential GDP?

• A)The unemployment rate falls below the natural unemployment rate.
• B)The capacity utilization rate increases.
• C)Firms increase their prices.
• D)The unemployment rate rises above the natural unemployment rate.
• E)Demand increases.

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Definitions:

Articulatory Loop

A component of the working memory model that deals with auditory information, allowing sounds and words to be retained in short-term memory through rehearsal.

Codes

In the context of data, codes represent rules or systems used for transforming information into a confidential, encrypted, or shorthand format.

Segments

Parts or sections into which something is divided or separated.

Chunks

Units of information grouped together to be processed or remembered as a single unit, facilitating easier recall.