If Real GDP Is Increasing at a 2 Percent Annual

question 55

Multiple Choice

If real GDP is increasing at a 2 percent annual rate while the unemployment rate is 7 percent,the economy is

• A) not achieving full economic potential
• B) experiencing an increase of 2 percent in real annual per capita GDP
• C) experiencing a slump
• D) experiencing high prices and low inflation
• E) producing along its production possibilities frontier

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Definitions:

Prenatal Development

The process of growth and development within the womb from conception to the birth of a baby.

Newborn States

Refers to the different physiological and behavioral conditions experienced by infants, including sleeping, waking, crying, and feeding.

Arousal

A physiological and psychological state of being awake, alert, and engaged, often triggered by sensory stimulation or emotional experiences.

Teratogen

A substance or factor that can cause malformation of an embryo or fetus.