When an Economy Experiences Sustained Growth in Real GDP

question 94

Multiple Choice

When an economy experiences sustained growth in real GDP,

• A)actual GDP is greater than potential GDP.
• B)actual GDP is less than potential GDP.
• C)potential GDP is likely to be increasing.
• D)factor prices are likely to be decreasing.
• E)wage rates will decrease slowly as factor-utilization rates decrease.

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Definitions:

Wage Rate

The amount of compensation a worker receives per unit of time or per task completed.

Factor

An element or variable that contributes to a result or outcome.

Level

The specified significance level in a statistical test, often denoted as alpha, which is the probability of rejecting the null hypothesis when it is actually true.

One-Way ANOVA

A statistical test that analyzes the differences among group means in a sample, used when comparing three or more groups for a single independent variable.