When Real GDP Grows More Slowly Than Potential GDP

question 120

Multiple Choice

When real GDP grows more slowly than potential GDP,

• A) nominal GDP rises.
• B) the unemployment rate falls.
• C) labor productivity falls.
• D) the unemployment rate rises.

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Definitions:

Floodplain

A flat area of land adjacent to a river or stream that experiences occasional or periodic flooding.

Real Danger

Real danger denotes a genuine threat to an individual's safety or well-being, necessitating an appropriate response.

Unlikely

Having a low probability of occurring; not likely to happen.

Attitude Stability

The degree to which an individual's attitudes, opinions, and beliefs remain consistent over time, despite external factors or influences.