If Equilibrium GDP Exceeds Potential GDP

question 48

Multiple Choice

If equilibrium GDP exceeds potential GDP

• A) potential output is much greater than actual output.
• B) the economy is in a recession.
• C) price levels are falling.
• D) actual spending is too low.
• E) an inflationary gap exists.

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Definitions:

Intonation

The variation of pitch while speaking, which can affect the meaning, emotion, or emphasis of spoken words.

Ambiguity

The quality of being open to more than one interpretation; lack of definiteness or clarity in meaning.

Intuitive Skill

An ability to understand or know something immediately based on feelings rather than facts, often playing a critical role in rapid decision-making.

Learned Skill

A capability or expertise acquired or enhanced through practice, training, or experience.