Suppose That Potential Output Is $5 Trillion and Real GDP

question 18

Multiple Choice

Suppose that potential output is $5 trillion and real GDP is currently $5.5 trillion. In the long run, we would expect that:

• A) real GDP will rise.
• B) wages and input prices will fall.
• C) the price level will rise.
• D) all of the above

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Definitions:

Slander

A form of defamation that involves making false spoken statements damaging to a person's reputation, as opposed to libel, which involves written statements.

Reckless Disregard

A legal term referring to a person's intentional negligence or failure to pay proper attention to a duty or law, often resulting in harm or damage.

Double Jeopardy

A legal principle that prevents an individual from being tried twice for the same offense.

Same Crime

The principle that individuals committing the same offense should receive equal treatment and punishment under law.