A Macroeconomic Theory That Stresses the Fact That Shifts in Potential

question 150

Multiple Choice

A macroeconomic theory that stresses the fact that shifts in potential GDP are a primary cause of fluctuations in real GDP is known as

• A)potential GDP theory.
• B)real business cycle theory.
• C)economic cycle theory.
• D)perennial growth theory.
• E)None of these

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Definitions:

Population Growth

The increase in the number of individuals in a population, influenced by birth rates, death rates, immigration, and emigration.

Thomas Malthus

An English economist and demographer, best known for his theory that population growth will always tend to outrun the food supply.

Mutation

Change in the nucleotide structure of an organism’s DNA.

Genetic Variation

The differences in DNA sequences among individuals within a population, leading to diversity in traits.