Potential GDP Focuses on The

question 3

Multiple Choice

Potential GDP focuses on the:

• A)long-run supply side of the economy.
• B)long-run demand side of the economy.
• C)short-run supply side of the economy.
• D)short-run demand side of the economy.

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Definitions:

Physical Illusion

A misinterpretation of a real external stimulus, often leading to a distorted perception of reality.

Induced Movement

An optical illusion in which a stationary object appears to move due to the motion of another surrounding object.

Autokinetic Illusion

A visual phenomenon in which a stationary point of light in a dark environment appears to move or drift due to small involuntary eye movements.

Induced Movement

A perceptual phenomenon where motion is perceived in a stationary object because of the movement of a surrounding framework or nearby objects.