Which of the Following Is True

question 155

Multiple Choice

Which of the following is true?

• A)Real GDP fluctuates around potential GDP.
• B)Potential GDP fluctuates around real GDP.
• C)Nominal GDP fluctuates around real GDP.
• D)Real GDP fluctuates around nominal GDP.
• E)When real GDP equals potential GDP,both equal nominal GDP.

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Definitions:

Intersection

The point at which two lines or paths cross each other, or the set of elements common to two or more sets.

Independent Events

Two events are independent if the outcome of one does not affect the outcome of another.

P(A|B)

The likelihood of event A happening, provided that event B has already taken place, signifying a conditional probability.

Disjoint Events

Disjoint events are two or more events that cannot occur simultaneously, indicating there is no overlap in their outcomes.