The Difference Between Actual Real GDP and Potential GDP

question 132

Multiple Choice

The difference between actual real GDP and potential GDP

• A) decreases as the unemployment rate rises.
• B) increases as the unemployment rate rises.
• C) increases as the employment rate rises.
• D) decreases as the labor force increases.

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Definitions:

Pietra Dura

Stonework inlaid with precious and semiprecious stones.

Taj Mahal

An iconic ivory-white marble mausoleum in Agra, India, built by Mughal Emperor Shah Jahan in memory of his wife Mumtaz Mahal.

Inlaid Decorative Stonework

The art of creating designs or patterns on objects, especially floors and walls, by setting pieces of stone, marble, or other materials into a surface.

Ashoka at Kalinga

Refers to the transformation of Emperor Ashoka, who embraced Buddhism after witnessing the violence of his conquest of Kalinga.