When Real GDP Is ________ Potential GDP, the Unemployment Rate

question 81

Multiple Choice

When real GDP is ________ potential GDP, the unemployment rate is ________ the natural unemployment rate.

• A) greater than; less than
• B) less than; equal to
• C) equal to; greater than
• D) greater than; greater than

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Definitions:

Debt Investments

Financial assets purchased with the expectation that the investment will generate interest income and be repaid in the future.

Interest Accrual

The recognition of interest earned or payable that has accumulated but not yet been recorded or paid.

Debt Investments

Investments made by purchasing bonds or other debt instruments, with the expectation of earning interest income and the return of principal.

Net Income

The amount of profit left after all operating expenses, taxes, and interest are deducted from total revenue.