What Is Potential GDP

question 227

Multiple Choice

What is potential GDP?

• A)It is the level of real GDP in the long run.
• B)It is the difference between current GDP and maximum GDP.
• C)It is the level of real GDP in the short run.
• D)It is the level of GDP at which inflation is constant.

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.