If Real GDP Is Less Than Potential GDP, We Would

question 21

Multiple Choice

If real GDP is less than potential GDP, we would expect

• A)the money wage rate to fall.
• B)the money wage rate to rise.
• C)potential GDP to increase.
• D)potential GDP to decrease.
• E)the exchange rate of the Canadian dollar to rise.

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Definitions:

Neurotic

A personality trait characterized by emotional instability, anxiety, moodiness, worry, and jealousy.

Anxious

Feeling of worry, nervousness, or unease about something with an uncertain outcome.

Narcissist

An individual exhibiting excessive self-love or self-centeredness, often associated with a lack of empathy and a need for admiration.

Grandiose View

An inflated self-concept, often characterized by overestimations of one’s importance, abilities, or achievements.