If the Actual GDP Is Less Than Potential GDP

question 47

Multiple Choice

If the actual GDP is less than potential GDP:

• A)potential GDP will fall.
• B)the price level will rise.
• C)investment spending will fall.
• D)the actual unemployment rate will be higher than the natural unemployment rate.

---

Definitions:

Autonomy

The freedom to schedule one’s own work activities and decide work procedures.

Web-Enabled Input

The process of using internet technology to input data into systems, applications, or databases.

Open Innovation

An approach that advocates for firms to use external ideas and collaborations in addition to internal efforts to advance their technology or products.

Creative Deviance

The act of breaking rules or norms in order to pursue novel ideas or solutions.