If Actual GDP Is Less Than Potential Output, Then the Economy

question 44

Multiple Choice

If actual GDP is less than potential output, then the economy is:

• A) in an inflationary gap.
• B) in a recessionary gap.
• C) in a long-run equilibrium.
• D) at full employment.

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Definitions:

Implicit Motives

Unconscious desires, preferences, or needs that influence an individual's behavior without their explicit awareness.

Projective Technique

A psychological assessment method in which individuals reveal their underlying motives, feelings, and attitudes through the interpretation of ambiguous stimuli.

Thematic Apperception Test

A projective psychological test in which individuals express their feelings and thoughts through stories they create about ambiguous pictures.

Picture Story Exercise

A projective psychological test used to uncover an individual's implicit motives, desires, and fears through the stories they create about ambiguous pictures.