As Actual Output Rises Above the Potential Level,which of the Following

question 125

Multiple Choice

As actual output rises above the potential level,which of the following must be true?

• A)more resources become unemployed
• B)prices remain constant
• C)real GDP rises
• D)nominal GDP remains constant
• E)production falls

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Definitions:

Opportunity Cost

The financial impact of rejecting the subsequent optimal choice when deciding.

Government Deficits

The financial situation in which a government's expenditures exceed its revenues within a given period, leading to borrowing or currency emission.

Federal Spending

Refers to the expenditures by the central government of a country on goods, services, and obligations.

Health Care

The organized provision of medical, diagnostic, preventive, and treatment services including mental health, personal care, and research activities.