In the Macroeconomic Short Run

question 343

Multiple Choice

In the macroeconomic short run,

• A) actual real GDP always equals potential GDP.
• B) the unemployment rate is zero.
• C) by definition, the economy is always moving away from full employment.
• D) actual real GDP may be less than or more than potential GDP.

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Definitions:

Social Facilitation

The tendency for people to perform tasks better or more efficiently when in the presence of others.

Social Loafing

Social loafing is a phenomenon where individuals exert less effort to achieve a goal when they work in a group than when they work individually.

Fundamental Attribution Error

A bias towards attributing others' actions more to their personal qualities than to the context they are in.

Dispositional Factors

Personality attributes or traits that influence an individual's behavior or attitudes in various situations.