When Actual GDP Does Not Rise as Fast as Potential

question 116

Multiple Choice

When actual GDP does not rise as fast as potential GDP, the economy most likely will experience

• A)inflation.
• B)recession.
• C)economic growth.
• D)falling unemployment.

---

Definitions:

Universal

A characteristic or attribute that is common to all members of a particular category or group.

Biologically Determined

Characteristics, traits, or behaviors that are influenced by genetics rather than the environment.

Gestures

Movements of the body, especially hands and arms, that convey meaning or emphasis.

Facial Expressions

Nonverbal signals of emotion made with the facial muscles, conveying information about an individual's emotional state.