Potential Real GDP Is the GDP That Economists Would Expect

question 17

True/False

Potential real GDP is the GDP that economists would expect to observe when the unemployment rate is zero.

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Definitions:

Automatization

The process of making actions or processes automatic, reducing the need for conscious attention in their execution.

Encoding

The procedure of changing data into a format that allows for its storage in memory.

Information Processing

A theory describing how the human mind takes in, stores, retrieves, and uses information, likening the mind to a computer.

Sensory Storage

The initial process of storing information, taken in through the senses, for a very brief period.