If Equilibrium GDP Exceeds Full-Employment GDP

question 121

Multiple Choice

If equilibrium GDP exceeds full-employment GDP,

• A)The difference is the recessionary GDP gap.
• B)The difference is the inflationary GDP gap.
• C)Inventories will accumulate.
• D)Leakages must be greater than injections.

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Definitions:

Groupthink

A psychological phenomenon that occurs within a group of people in which the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome.

Social Facilitation

The tendency for people to perform differently when in the presence of others than when alone, typically showing improved performance on simple or well-rehearsed tasks.

Reciting

Speaking aloud from memory, often practiced with poems, speeches, or other text materials.

Improved Performance

The enhancement of one's ability to execute a task or activity better than before, often through practice, training, or other interventions.