When Real GDP Is Less Than Potential GDP, There Is

question 36

Multiple Choice

When real GDP is less than potential GDP, there is ________ which leads the unemployment rate to ________.

• A) an inflationary gap; rise
• B) a recessionary gap; decline
• C) a recessionary gap; remain at the natural level
• D) an inflationary gap; remain at the natural level
• E) a recessionary gap; rise

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Definitions:

Real Property

Land, and generally whatever is erected or growing on or affixed to the land, including buildings and crops.

Mortgagee

The lender or financial institution in a mortgage agreement, holding the mortgage as security for the loan.

Debtor

An individual or entity that owes a debt to another party, often in the context of financial obligations.

Real Estate

Assets that include land, the structures on that land, as well as the natural resources present.