Which of the Following Statements Is TRUE

question 290

Multiple Choice

Which of the following statements is TRUE?

• A) Real GDP fluctuates around potential GDP.
• B) Potential GDP fluctuates around real GDP.
• C) Potential GDP is the same as real GDP.
• D) When all of the economy's resources are fully employed, the value of production is called real GDP.

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Definitions:

Breathing

The process of taking air into and expelling it from the lungs to facilitate gas exchange with the internal environment, mainly by bringing in oxygen and flushing out carbon dioxide.

Cerebral Spinal Fluid

A clear, colorless body fluid found in the brain and spinal cord, acting as a cushion for the brain's cortex, providing basic mechanical and immunological protection.

Shock Absorber

A mechanical device designed to absorb and dampen shock impulses in vehicles and machinery, contributing to smoother movement.

CNS

The central nervous system, consisting of the brain and spinal cord, which processes and sends out nerve signals.