In the Short Run, Real GDP Can Be Greater Than

question 23

Multiple Choice

In the short run, real GDP can be greater than or less than potential GDP because in the short run the

• A)quantity of capital is fixed.
• B)money wage rate is fixed.
• C)price level is fixed.
• D)full- employment level of employment is fixed.

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Definitions:

Lesioned

Referring to tissue that has been damaged or has a wound, often used in the context of brain research to describe areas where damage has occurred.

Orbitofrontal Cortex

The part of the frontal lobe involved in decision making and processing of reward-related stimuli.

Hypothalamus

A small region at the base of the brain responsible for hormone production, regulation of body temperature, hunger, thirst, and circadian rhythms.

Curt Richter

An American psychologist known for his work in biological rhythms and the study of homeostasis in animals.