If Real GDP Exceeds Potential GDP, Then Employment Is ________

question 126

Multiple Choice

If real GDP exceeds potential GDP, then employment is ________ full employment and the unemployment rate is ________ the natural unemployment rate.

• A) below; above
• B) equal to; below
• C) above; below
• D) above; above
• E) equal to; equal to

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Definitions:

Compounded Quarterly

Interest calculation method where the interest is added to the principal four times annually, leading to increased growth over time due to the quarterly compounding effect.

Economic Value

The measure of the benefit provided by a good or service to an economic agent.

Bequest

A transfer of personal property or assets to beneficiaries through a will.

Compounded Monthly

Interest calculation method where interest is added to the principal balance monthly, leading to interest on interest.