In Any Year, Real GDP

question 83

Multiple Choice

In any year, real GDP

• A) must always be less than potential GDP.
• B) might be greater or less than potential GDP.
• C) will always be greater than potential GDP because of the tendency of nations to incur inflation.
• D) always equals potential GDP.

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Definitions:

Nominal Group Technique

A structured method for group brainstorming that encourages contributions from everyone in the group to identify and solve problems.

Scenario Planning

A strategic planning method used to make flexible long-term plans based on varying assumptions about future conditions.

Quantitative Model

A mathematical model that represents systems using numerical parameters to predict and analyze their behavior under different scenarios.

Qualitative Model

A model that focuses on non-quantifiable aspects such as patterns, themes, or descriptions to understand phenomena or behaviors.