Suppose Real GDP Is $14 Trillion and Potential Real GDP

question 306

Multiple Choice

Suppose real GDP is $14 trillion and potential real GDP is $14.4 trillion.An increase in government purchases of $400 billion would cause real GDP to ________ potential real GDP (assuming a constant price level) .

• A)equal
• B)be less than
• C)be more than
• D)There is insufficient information given here to draw a conclusion.

---

Definitions:

Ruling Passion

A dominant inner force or motivation that shapes an individual's actions and life path, often driving their decisions and priorities.

Traits

Enduring characteristics that describe an individual's behavior across various situations.

Genetic Heritage

The biological attributes and characteristics passed down from previous generations to an individual.

Idiographic Approach

is a method in psychology focusing on the detailed study of the individual and the unique psychological mechanisms within one person.