In the Short Run, Real GDP Can Increase Beyond a Level

question 198

Multiple Choice

In the short run, real GDP can increase beyond a level consistent with the long-run growth path if

• A)existing capital and labor are used more intensely.
• B)the price level decreases accordingly.
• C)we measure in nominal terms instead of real terms.
• D)there is an increase in marginal tax rates.

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Definitions:

Axle Grease

A thick, viscous lubricant applied to the axles of vehicles to reduce friction and wear between moving parts.

Oscillating Bolster

A structural component on rail vehicles or trailers that supports the load and allows for pivoting or oscillation to accommodate uneven terrain.

High Rigidity

A characteristic of materials or structures that resist deformation under load, ensuring stability and durability.

Monocoque

Frame design in which all the shell components form the frame; many automobiles and most van trailers use a monocoque principle. This means that the van floor, roof, bulkhead, doors, and sidewalls collectively compose the frame assembly. Also known as unibody design.