When Real GDP Is Above Potential GDP

question 95

Multiple Choice

When real GDP is above potential GDP,

• A) frictional unemployment is probably above normal levels.
• B) frictional unemployment is probably below normal levels.
• C) structural unemployment is probably above normal levels.
• D) cyclical unemployment is probably above normal levels.
• E) seasonal unemployment is probably above normal levels.

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Definitions:

Hypothalamus

A region of the brain responsible for hormonal control, regulation of body temperature, hunger, thirst, and other homeostatic systems.

Ghrelin

A substance primarily generated by the stomach, which encourages the feeling of hunger and communicates the need to eat to the brain.

Huge Appetite

An unusually large desire to consume food, which can be driven by physiological, psychological, or emotional factors.

Gain Weight

The process of increasing body mass through accumulation of fat, muscle, or other substances.