Why Is There Unemployment When Real GDP Equals Potential GDP

question 50

Essay

Why is there unemployment when real GDP equals potential GDP?

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Definitions:

Theory X

A management concept that assumes employees are inherently lazy, need constant supervision, and are motivated primarily by financial rewards.

Theory Y

A management theory that assumes employees are inherently motivated and can exercise self-direction and control.

Internal Attributions

The process of ascribing the cause of a person's behavior to internal factors such as personality traits, attitudes, or effort.

Successful Leaders

Individuals who are able to inspire and guide others towards achieving goals, often through effective communication, motivation, and setting a strong example.