Which of the following statements is true?
A) Real GDP fluctuates around potential GDP.
B) Potential GDP fluctuates around real GDP.
C) Potential GDP is the same as real GDP.
D) When all of the economy?s resources are fully employed, the value of production is called real GDP.
A) Real GDP fluctuates around potential GDP.
You might also like to view...
A person that is risk averse
A) exhibits decreasing marginal utility of wealth. B) exhibits increasing marginal utility of wealth. C) always engages in fair bets. D) loves lotteries.
The spending multiplier is:
a. 1 / (1 ? MPC). b. 1 ? MPC. c. MPC. d. MPC / (1 ? MPC).
Compared to countries with less economic freedom, countries with more economic freedom
a. achieve higher per person income levels, but they also have higher poverty rates. b. grow more rapidly, but the income levels of the poor are largely unaffected by the higher growth rates of the freer economies. c. achieve both higher income levels per person and lower rates of poverty. d. grow less rapidly and experience higher poverty rates.
Based upon the equation of exchange, which of the following (ceteris paribus) is most likely to bring about inflation?
A) An increase in the money supply. B) A decrease in velocity. C) An increase in Real GDP. D) a and b E) a and c