In the Macroeconomic Long Run

question 358

Multiple Choice

In the macroeconomic long run,

• A) GDP always is below potential GDP.
• B) there is full employment with no unemployment.
• C) output always is above potential GDP.
• D) there is full employment and real GDP is equal to potential GDP.

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Definitions:

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment’s cost.

Investment Contributions

Money that individuals or entities provide toward investment vehicles for the purpose of accumulation and growth.

Compounded Rate

Refers to the process by which interest is earned on both the initial principal and the interest previously earned.

Monthly Payments

Regular payments made once per month, often used in the context of loans, leases, or other financial agreements.