When Real GDP Is Greater Than Potential Output,the Unemployment Rate

question 64

Multiple Choice

When real GDP is greater than potential output,the unemployment rate ________ the NAIRU.

• A)falls toward
• B)falls below
• C)rises toward but never exceeds
• D)is equal to
• E)rises above

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Definitions:

Economic Profit

The distinction between total sales and the aggregate of both explicit and implicit expenses for a firm.

Equities

Equities represent ownership interest in corporations in the form of common or preferred stock, and they entitle the holder to a share of the company's profits through dividends.

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A collection of financial investments like stocks, bonds, commodities, and cash held by individuals, financial institutions, or organizations.