When Real GDP Is __________Potential GDP, the Unemployment Rate Is

question 224

Multiple Choice

When real GDP is __________potential GDP, the unemployment rate is __________the natural unemployment rate.

• A) greater than; greater than
• B) greater than; less than
• C) equal to; greater than
• D) less than; equal to

---

Definitions:

Complementary Goods

Products or services that tend to be used together, where the consumption of one enhances the use of the other.

Income Elasticity

A measure of how much the demand for a good changes in response to a change in consumers' income.

Cross-Price Elasticity

A measurement of how the quantity demanded of one good responds to a change in the price of another good.

Negative

A term often indicating a subtraction, a deficit, or an unfavorable outcome in various contexts.