If Real GDP Exceeds Potential GDP,this Means That

question 57

Multiple Choice

If real GDP exceeds potential GDP,this means that

• A)output is below the level produced at the benchmark rate for high employment and high rate of resource utilization.
• B)this cannot occur; the economy can never be at a point where real GDP exceeds potential GDP.
• C)cyclical output is above what the economy can sustain in the long-run.
• D)the economy is expanding.

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Definitions:

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High Culture

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A founding figure in the field of sociology, known for his contributions to social theory, including his studies on social cohesion, religion, and the division of labor.

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