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

question 198

Multiple Choice

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

• A)existing capital and labor are used more intensely.
• 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:

External Factors

Elements outside an individual that can influence their behavior, decisions, and well-being, such as the environment, social interactions, and cultural norms.

Success

The achievement of a goal or the attainment of wealth, position, honors, or the like.

Humanistic Insights

Perspectives and understandings that emphasize personal growth, self-acceptance, and the realization of one's potential, often associated with humanistic psychology.

Julian Rotter

A psychologist known for his development of social learning theory and the concept of locus of control.