If We Cannot Accurately Measure Potential GDP

question 25

Multiple Choice

If we cannot accurately measure potential GDP:

• A) we might overestimate the severity of a recession.
• B) we may adopt the wrong fiscal or monetary policy.
• C) we will never know the true state of the economy.
• D) All of these answers are correct.
• E) None of these answers is correct.

---

Definitions:

Axillary Temperature

Axillary temperature is a way to measure body temperature by placing a thermometer in the armpit.

Core Temperature

The temperature of the internal environment of the body, which is maintained within a narrow range for optimal physiological functioning.

Intermittent Fever

A fever that occurs sporadically or at irregular intervals, typically indicating an infection or disease.

Orally

Administration of substances, such as medication or food, through the mouth.