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:

Retrofitting

The process of adding new technology or features to an existing system, machine, or building to improve its functionality or performance.

R-12

Theoretically illegal but still available refrigerant. GWP rating is 10,900.

Vacuum Pump

A device that removes gas molecules from a sealed volume in order to create a partial vacuum.

Refrigerant Container

A special container designed to hold refrigerant, a substance used in air conditioning systems to absorb and release heat, under pressure.