If Real GDP Exceeds Potential GDP,then the Unemployment Rate ________

question 39

Multiple Choice

If real GDP exceeds potential GDP,then the unemployment rate ________ the natural unemployment rate.

• A)equals
• B)is greater than
• C)is less than
• D)The premise of the question is incorrect because the relationship between real GDP and potential GDP has nothing to do with the relationship between the unemployment rate and the natural unemployment rate.
• E)The premise of the question is incorrect because real GDP can never exceed potential GDP.

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Definitions:

Analogy

A comparison between two things, typically for the purpose of explanation or clarification.

Conceptualized

The process of forming a concept or idea by synthesizing and organizing information.

Declarative Memory

The subsystem within long-term memory that stores facts, information, and personal life events that can be brought to mind verbally or in the form of images and then declared or stated; also called explicit memory.

Episodic Memory

A type of long-term memory that involves the recollection of specific events, situations, and experiences.