A Country Reports That Its Actual Real GDP Is Greater

question 110

Multiple Choice

A country reports that its actual real GDP is greater than its potential GDP. It must be that

• A)more workers decided to quit work in order to enjoy leisure time.
• B)the excess by which real GDP exceeds potential GDP is only temporary and eventually real GDP will decrease to be equal to potential GDP.
• C)an error was made when calculating actual real GDP.
• D)the price level is increasing.
• E)None of the above answers is correct because it is impossible for a country's real GDP to exceed its potential GDP.

---

Definitions:

Cliché

An overused phrase or idea that has lost its original effectiveness or power.

Expenditures

Refers to the act of spending or using up resources, often relating to money spent on goods, services, or operations.

Short Words

Advocates the use of concise and simple words to improve clarity and understanding in written and spoken communication.

Communication

Communication involves the exchange of information, ideas, or messages between individuals through various channels and mediums.