If the Economy Is at Macroeconomic Equilibrium,then Real GDP

question 143

Multiple Choice

If the economy is at macroeconomic equilibrium,then real GDP

• A)must equal potential GDP.
• B)must be less than potential GDP.
• C)must be great than potential GDP.
• D)might be equal to,greater than,or less than potential GDP.
• E)cannot be compared to potential GDP.

Recognize the characteristics of population age structure diagrams.

Understand the concept and implications of demographic transition.

Differentiate between developed and developing countries based on demographic indicators.

Analyze the relationship between literacy rates and infant mortality.

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Definitions:

FICA Taxes

Taxes required by the Federal Insurance Contributions Act, funding Social Security and Medicare, deducted from employees' paychecks and matched by employers.

Social Security

A government program providing economic assistance to persons with inadequate or no income, funded by taxes on workers and employers.

Medicare Benefits

Medicare benefits refer to the health care services covered under Medicare, a United States federal health insurance program for people who are 65 or older, certain younger people with disabilities, and people with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a transplant).

FICA Tax

Federal Insurance Contributions Act tax used to finance federal programs for old-age and disability benefits (social security) and health insurance for the aged (Medicare).