Which School of Thought Believes That Real GDP Always Equals

question 406

Multiple Choice

Which school of thought believes that real GDP always equals potential GDP?

• A) only classical
• B) only Keynesian
• C) Monetarist
• D) both Keynesian and classical

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Definitions:

Consumer Surplus

The distinction between what consumers are willing and financially able to pay for a good or service versus the actual payment they make.

Vending Machine

An automated machine that provides items such as snacks, beverages, cigarettes, or lottery tickets to consumers after money, a credit card, or a specially designed card is inserted into the machine.

Consumer Surplus

The difference in the collective amount that consumers are poised and able to expend on a product or service and the amount they actually expend.

Consumer Surplus

The gap between the price consumers are prepared to pay for a product or service and the amount they end up spending.