The Amount by Which Actual GDP Falls Short of Potential

question 36

Multiple Choice

The amount by which actual GDP falls short of potential GDP is one measure of the

• A) natural rate of unemployment.
• B) macroeconomic cost of unemployment.
• C) difference between real and nominal GDP.
• D) potential to produce outside the nation's PPC.

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Definitions:

Spreading

The act of extending, distributing, or dispersing something over an area or period of time.

Physician

A medical professional qualified to practice medicine aimed at diagnosing, treating, and preventing illness and injury.

Direct View

Observing or inspecting something directly rather than through an intermediary device or process.

Colposcope

A medical diagnostic device used to closely examine the cervix and vagina for signs of disease.