If Real GDP Is Less Than Potential GDP

question 105

Multiple Choice

If real GDP is less than potential GDP,

• A)the price level will not change.
• B)the rate of inflation will not change.
• C)the rate of inflation will increase.
• D)the rate of inflation will decrease.
• E)the price level will fall.

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Definitions:

Central Route

A path of persuasion that involves careful and thoughtful consideration of the arguments presented.

Peripheral Route

A method of persuasion that relies on superficial cues rather than the substantive quality of the argument.

Cognitive Dissonance

The mental discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.

Political Campaign

An organized effort which seeks to influence the decision-making process within a specific group, typically in the context of elections for political offices.