Potential GDP Is Estimated to Grow at a Rate of 2

question 162

Multiple Choice

Potential GDP is estimated to grow at a rate of 2% in Canada.Actual GDP in Canada

• A)always grows at a slower rate than potential GDP.
• B)always grows at a faster rate than potential GDP.
• C)always grows at the same rate as potential GDP.
• D)is the same as potential GDP if all firms in the economy are working at capacity.
• E)is always lower than potential GDP.

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Definitions:

Prototype View

The prototype view is a theory in cognitive science suggesting that people categorize objects and ideas based on a mental image or "prototype" that represents the most typical example of a category.

Prototype

An abstract representation of an idealized member of a class of objects or events.

Exemplar

A specific instance, example, or case that is representative of a concept, category, or phenomenon.

Schema

An organized framework for representing knowledge that typically includes characters, plots, and settings and incorporates both general knowledge about the world and information about particular events. See also script and story grammar.