In the Short Run, Real GDP Can Increase Beyond a Level

question 258

Multiple Choice

In the short run, real GDP can increase beyond a level consistent with the long-run growth path if

• A) labor productivity improves.
• B) the price level decreases accordingly.
• C) we measure in nominal terms instead of real terms.
• D) there is an increase in marginal tax rates.

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Definitions:

Half-moon

A crescent-shaped figure, often used to describe the visible white shape at the base of a human fingernail.

Erectile Tissue

Tissue in the body capable of becoming rigid and engorged with blood, primarily found in the penis and clitoris.

Clitoris

An erectile organ located at the anterior junction of the labia minora.

Labia

The external folds of skin surrounding the openings of the vagina, divided into the labia majora and the labia minora.