Suppose Real GDP Exceeds Potential Real GDP

question 53

Multiple Choice

Suppose real GDP exceeds potential real GDP.If the government decreases its expenditures on goods and services,then real GDP ________ and the price level ________.

• A) decreases; rises
• B) increases; falls
• C) decreases; falls
• D) increases; rises

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Definitions:

Rehearsing

The act of practicing a performance, presentation, or activity ahead of time to improve proficiency and confidence.

Reading

The process of interpreting and understanding written symbols and texts to gain information, knowledge, or pleasure.

Speaker Flaws

Refers to weaknesses or mistakes in a presenter's delivery or speech content that can detract from the effectiveness of the presentation.

Voice

In writing, the distinctive style or perspective that reflects the author's personality or the character's viewpoint; in speech, the sound produced by the vibration of the vocal cords.