The Difference Between Actual Real GDP and Potential GDP

question 132

Multiple Choice

The difference between actual real GDP and potential GDP

• A) decreases as the unemployment rate rises.
• B) increases as the unemployment rate rises.
• C) increases as the employment rate rises.
• D) decreases as the labor force increases.

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Definitions:

Principal

The head administrator of a school, responsible for overseeing the daily operations, staff, and well-being of students.

Noncustodial Parent

The parent who does not have legal physical custody of a child but may have visitation rights or pay child support.

Divorced

The legal dissolution of a marriage by a court or other competent body, officially ending the marital relationship.

Remarried

The act of entering into a new marriage after one or more previous marriages have ended due to divorce or death of a spouse.