In the Macroeconomic Long Run

question 242

Multiple Choice

In the macroeconomic long run

• A) real GDP is always below potential GDP.
• B) there is full employment with no unemployment.
• C) output always is above potential GDP.
• D) there is full employment, and real GDP is equal to potential GDP.

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Definitions:

Developmental Norm

Common patterns or ranges of behaviors, activities, and skills that are typical at specific ages or stages of development.

Crystallized Intelligence

The aspect of intelligence that involves the ability to use learned knowledge and experience.

Fluid Intelligence

The capacity to think logically and solve problems in novel situations, independent of acquired knowledge.

Concrete Operational Thought

A stage in Jean Piaget's theory of cognitive development where children (ages 7-12 approximately) gain the ability to think logically about concrete events.