If Real GDP Is Less Than Potential GDP, Then

question 47

Multiple Choice

If real GDP is less than potential GDP, then:

• A)the actual unemployment rate is greater than the natural rate of unemployment.
• B)the actual unemployment rate equals zero.
• C)the output gap is positive.
• D)the actual unemployment rate is less than the natural rate of unemployment.

---

Definitions:

Standardization

The process of implementing and developing technical standards to ensure consistency and compatibility of products and services.

Pricing

The method of determining the value at which a product or service will be sold to consumers.

Transfer Pricing

Pertains to the pricing of goods, services, and intellectual property when these are exchanged between companies under a common control, affecting tax liabilities and financial results.

Division Charges

Fees or costs allocated to separate departments or divisions within a company for internal accounting or budgeting purposes.