Which of the Following Happen(s) When Real GDP Grows More

question 73

Multiple Choice

Which of the following happen(s) when real GDP grows more slowly than potential GDP?

• A)The output gap becomes more positive.
• B)The output gap and the unemployment rate both increase.
• C)The output gap and the unemployment rate both decrease.
• D)The unemployment rate rises.

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Definitions:

Congeneric Merger

Involves firms that are interrelated but that do not have identical lines of business. One example is Advanced Micro Devices' acquisition of ATI Technologies.

Related Businesses

Companies or entities that engage in similar or complementary activities, often within the same industry or market.

Carve-out

A strategic move by a company to sell or spin off a portion of its business or assets.

Corporate Subsidiary

A company that is completely or majority-owned by another company, known as the parent company.