If Real GDP Is Less Than Potential GDP, We Would

question 85

Multiple Choice

If real GDP is less than potential GDP, we would expect

• A)the exchange rate of the Canadian dollar to rise.
• B)potential GDP to increase.
• C)the money wage rate to fall.
• D)the money wage rate to rise.
• E)potential GDP to decrease.

---

Definitions:

High-Quality Workforce

A group of employees known for their exceptional skills, high productivity, and capability to drive organizational success.

Labor Costs

The total sum of all wages paid to employees, as well as the costs of employee benefits and payroll taxes incurred by an employer.

Pay Range

A set of possible pay rates defined by a minimum, maximum, and midpoint of pay for employees holding a particular job or a job within a particular pay grade.

Minimum Pay

The lowest legal salary that an employer can pay to an employee.