Which School of Thought Believes That Real GDP Always Equals

question 101

Multiple Choice

Which school of thought believes that real GDP always equals potential GDP?

• A) only Keynesian
• B) Monetarist
• C) both Keynesian and classical
• D) only classical

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Definitions:

Existence Needs

Refers to the basic physiological and safety needs of individuals, such as food, water, shelter, and security.

Growth Needs

Psychological desires that drive individuals to seek challenges, self-improvement, and personal development.

Motivator Factor

Elements of work or conditions that can significantly increase job satisfaction and motivation, as per Herzberg's motivation-hygiene theory.

Herzberg

Refers to Frederick Herzberg, a psychologist known for his Two-Factor Theory of motivation and job satisfaction.