If GDP Is ________ Potential Output, the Economy Is in a ________

question 86

Multiple Choice

If GDP is ________ potential output, the economy is in a ________ and prices and wages will tend to decrease.

• A) below; recession
• B) below; boom
• C) above; recession
• D) above; boom

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Definitions:

General Damages

Compensation awarded in a lawsuit for losses that do not have a specific economic value, such as pain and suffering or defamation.

Loss of Income

An inability to earn income due to an unforeseen event, such as an injury, illness, or job loss.

Libel Per Se

Defamatory statements that are blatantly damaging to an individual's reputation without the need for further explanation or proof of harm.

Editorial

An article or short piece in a publication expressing the opinion of its editor or publisher.