When Actual Real GDP Output Is Below Full-Employment Real GDP

question 156

True/False

When actual real GDP output is below full-employment real GDP, the GDP measures the cost of cyclical unemployment.

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Definitions:

Liquidated Damages

A predetermined sum agreed upon in a contract, payable as compensation for failure to perform specific acts or to fulfill certain conditions.

Doctrine Of Part-Performance

A legal concept in contract law that allows an unwritten contract to be enforced if one party has taken significant steps to perform their part.

Quantum Meruit

A doctrine in contract law that allows a person to recover reasonable value of services rendered, when a contract does not exist or is unclear, based on the idea of preventing unjust enrichment.

Abandoned Contract

A contract that is no longer active because all parties have ceased to perform their obligations.