If the Equilibrium Level of Real GDP Per Year Is

question 71

Multiple Choice

If the equilibrium level of real GDP per year is greater than the full-employment level of GDP, then

• A) a recessionary gap occurs.
• B) the economy is at full employment with no price changes.
• C) the economy expands the level of real GDP.
• D) an inflationary gap occurs.

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Definitions:

Sample

A subset of a population selected for measurement, observation, or questioning to provide statistical information about the population.

Correlation

The degree to which events or characteristics vary along with each other.

Magnitude

The size, extent, or importance of something.

Correlation Coefficient

A numerical indicator that shows the degree to which multiple variables co-vary.