Assume initially that real GDP is equal to potential GDP. Explain carefully whether each of the following would cause real GDP to rise above or fall below potential GDP.
Definitions:
Civic Virtue
The cultivation of habits important for the success of the community. Emphasizes actions that support the collective well-being.
Self-interest
The motivation by individuals to pursue actions or goals that are beneficial to themselves.
Common Good
A concept that refers to either policies or actions that benefit all members of a given community or society.
Veto Power
The authority to reject or prohibit proposals or laws, often held by a president, governor, or other leader.
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