If the Symbol = 1,800 Cars, Estimate What the Symbol

question 37

Multiple Choice

If the symbol = 1,800 cars, estimate what the symbol represents.

• A) about 900 cars
• B) about 1,800 cars
• C) about 600 cars
• D) about 500 cars

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Definitions:

Potential GDP

The highest level of Gross Domestic Product (GDP) an economy can sustain over a long period without increasing inflation, reflecting its full employment output.

Inflation

A widespread rise in prices and a decrease in the value of money.

Spending Multiplier

A concept in Keynesian economics that quantifies the effect of an increase in autonomous spending on the total economic output.

Potential Output

The highest level of economic output that can be sustained over the long term without increasing inflation.