If the Quantity of Real GDP Supplied Equals the Quantity

question 72

Multiple Choice

If the quantity of real GDP supplied equals the quantity of real GDP demanded,then

• A)nominal GDP must equal real GDP.
• B)real GDP must equal potential GDP.
• C)real GDP must be greater than potential GDP.
• D)real GDP might be greater than,equal to,or less than potential GDP.
• E)real GDP must be less than potential GDP.

Acknowledge the disadvantages associated with flexible exchange rates.

Understand the impact of taste changes and other determinants on the value of a nation's currency.

Analyze the effects of currency appreciation and depreciation on international trade and economic conditions.

Evaluate the pros and cons of the managed float system of exchange rates.

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Definitions:

Equity Theory

A theory in social psychology that explains how individuals perceive fairness in distribution of resources within interpersonal relationships, leading to satisfaction or dissatisfaction.

Needs Hierarchy Theory

A motivational theory proposing that humans have a hierarchy of five needs, ranging from basic physiological needs to self-actualization, which influence behavior.

Strongest Source

The primary or most powerful origin from which something derives or is obtained.

Drives/Needs-Based Theories

A set of theories in psychology that suggest human behavior is motivated by innate drives or needs that must be satisfied.