Which of the Following Is True

question 10

Multiple Choice

Which of the following is true?

• A) Real GDP fluctuates around potential GDP.
• B) Potential GDP fluctuates around nominal GDP.
• C) Nominal GDP fluctuates around real GDP.
• D) Real GDP never equals potential GDP.
• E) The Okun gaps are much larger than the Lucas wedge.

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Definitions:

Unemployment

A situation where individuals who are capable of working and are actively seeking employment are unable to find a job.

Incomes

refers to the earnings that individuals or businesses receive, typically through work, investments, or other sources.

Changing Technology

The ongoing evolution and innovation in technology that impacts how goods and services are produced, consumed, and delivered.

Employment

The condition of having a job or being employed in a paid position.