Using the Data in the Above Table, If Potential GDP

question 14

Multiple Choice

$\begin{array} { c c c } \hline \begin{array} { c } \text { Price level } \\\text { (GDP deflator, } \\\text { 2005 = 100) }\end{array} & \begin{array} { c } \text { Aggregate supply } \\\text { (billions of } \\\text { 2005 dollars) }\end{array} & \begin{array} { c } \text { Aggregate demand } \\\text { (billions of } \\\text { 2005 dollars) }\end{array} \\\hline 30 & 28 & 16 \\25 & 25 & 19 \\20 & 22 & 22 \\15 & 19 & 25 \\10 & 16 & 28 \\\hline\end{array}$
Using the data in the above table, if potential GDP for this economy is $25 billion, then at the present moment real GDP is

• A)less than potential GDP.
• B)not comparable to potential GDP.
• C)at the full-employment level of output.
• D)greater than potential GDP.
• E)equal to potential GDP.

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Definitions:

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The capability to perform academic tasks, often measured through grades, tests, and other forms of evaluation.

High Reliability

Describes systems or processes that consistently perform their intended function safely and effectively, even under adverse conditions.

Predictive Validity

The degree to which a result from a measurement or evaluation forecasts upcoming abilities in a connected activity.

Test Validity

The degree of accuracy with which an assessment measures its intended target.