If Real GDP Is Currently $500 Billion, There Is 3

question 82

Multiple Choice

If real GDP is currently $500 billion, there is 3 per cent cyclical unemployment and the potential nominal GDP is $600 billion, we can conclude with certainty that:

• A) the GDP gap is $100 billion.
• B) there is no GDP gap.
• C) there is a GDP gap.
• D) the economy is operating above full employment.

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Definitions:

Federal Government

The national government of a federation, which holds the authority to govern matters that affect the entire country.

Church of England

The primary state church in England, which is a part of the worldwide Anglican Communion; it has its roots in the 16th-century Reformation.

Federal Laws

Laws created and enforced by the federal government of a country.

Limitations

Legal restrictions, often related to the time within which legal proceedings must be initiated.