As the Unemployment Rate Increases

question 65

Multiple Choice

As the unemployment rate increases,

• A) potential GDP increases.
• B) real GDP decreases.
• C) full employment GDP decreases.
• D) both real GDP and potential GDP decrease.
• E) potential GDP decreases.

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Definitions:

Conspicuous Statement

A statement or notice that is made to stand out clearly and be easily noticed, often requiring a specific form of presentation to ensure visibility.

Negotiable Instrument

A document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payee’s name written on the document.

Negotiability

The characteristic of a financial instrument that allows it to be transferred or assigned from one party to another, facilitating commerce and trade.

Electronic Deposit

The transfer of funds directly into a bank account, eliminating the need for physical checks.