If the GDP Gap Is Zero, We Can Conclude That

question 5

Multiple Choice

If the GDP gap is zero, we can conclude that:

• A) unemployment is zero.
• B) we are below our potential output level.
• C) cyclical unemployment is zero.
• D) we are above our potential output level.

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Definitions:

Elaborative Rehearsal Cue

A memory technique involving the linking of new information to existing knowledge through the creation of meaningful associations.

Structural Cue

Visual or auditory information that helps to understand the organization or structure of an environment or object.

Declarative Memories

Memories that are retrievable through conscious effort, involving facts and episodes.

Nondeclarative Memories

Memories that are gained through experience and practice, such as skills or habits, that we are not consciously aware of.