Over the Business Cycle

question 209

Multiple Choice

Over the business cycle,

• A)potential GDP fluctuates around its trend.
• B)real GDP fluctuates around its trend.
• C)only potential GDP fluctuates around its trend and real GDP remains equal to its trend.
• D)only real GDP fluctuates around its trend and potential GDP remains equal to its trend.
• E)neither real GDP nor potential GDP fluctuates because they just grow smoothly along their trends.

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Definitions:

Mere Presence

The concept that the simple presence of others can influence an individual's behavior, without any direct interaction.

Individualists

People who prioritize their own goals and well-being over the goals and well-being of the group.

Collectivists

Individuals or cultures that prioritize the goals, values, and well-being of the group over those of the individual, emphasizing community, cooperation, and interdependence.

Interpersonal Processes

The dynamics and mechanisms through which people interact and communicate with each other in social settings.