Potential GDP Is the Level of Output Produced When the Unemployment

question 108

Multiple Choice

Potential GDP is the level of output produced when the unemployment rate is

• A)less than the natural unemployment rate.
• B)greater than the natural unemployment rate.
• C)zero.
• D)equal to the natural unemployment rate.
• E)made up of only cyclical unemployment.

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Definitions:

School District

A geographical unit for the local administration of elementary or secondary schools.

Proportional Adjustment

A method of modifying figures or rates in such a way that the relationship between them remains constant.

Annual Budget

A financial plan for a year that estimates income and expenditures for the said period.

Currency Exchange Rates

How much one currency is valued when converting to a different currency.