In Any Year, Real GDP

question 383

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 be greater than potential GDP if the inflation rate is positive.
• D) always equals potential GDP.

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Definitions:

Lower Classes

Social groups occupying the lower positions in a hierarchical classification of socioeconomic status based on income, education, occupation, and social status.

Common Standards

Widely accepted criteria or benchmarks that establish quality, performance, or ethical expectations in various fields or industries.

Homogenizing

The process of making things uniform or similar, often by reducing diversity or variations within a particular group or context.

King James Bible

An English translation of the Christian Bible commissioned in 1604 by King James I of England, which has had a profound influence on English-speaking Christianity and literature.