If the Economy Is Fully Employed, Which of the Following

question 60

Multiple Choice

If the economy is fully employed, which of the following is true?

• A)Real and potential GDP are equal.
• B)The price level equals 100.
• C)Real GDP cannot increase.
• D)Real and nominal GDP are equal.
• E)The unemployment rate is zero.

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Definitions:

Parasitic Insect

An insect that feeds on the blood or tissue of its host, often causing illness or discomfort.

Scabies

A contagious skin condition caused by tiny mites burrowing into the skin, leading to intense itching and rash.

Culture Medium

A substance containing all the nutrients a particular type of microorganism needs to grow.

Agar

A gel-like substance derived from seaweed used as a growing medium in microbiological culture or as a thickener in food.