In Any Year, Real GDP

question 83

Multiple Choice

In any year, real GDP

• A) must always be less than potential GDP.
• B) might be greater or less than potential GDP.
• C) will always be greater than potential GDP because of the tendency of nations to incur inflation.
• D) always equals potential GDP.

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Definitions:

Cost-Efficient

Economically advantageous, achieving the best possible outcome or value with the least waste of resources or effort.

Community Rating

A pricing strategy where health insurance premiums are not based on an individual’s health status or age but are the same for all members of a community.

Average Risk

The standard level of chance or probability that an individual will encounter a specific event or condition, used as a baseline in risk assessments.

Individual Premiums

Payments made periodically to an insurance company by individuals to maintain their policy and coverage.