The relationship between real GDP and potential GDP over the business cycle can be best summarized by which of the following statements?
A) Real GDP fluctuates around potential GDP.
B) Real GDP is always equal to potential GDP.
C) Real GDP cannot be greater than potential GDP.
D) Real GDP cannot be less than potential GDP.
E) Real GDP cannot be equal to potential GDP.
A
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According to research by Richard Sylla and John James on western farm mortgage rates,
a. real rates were lower than rates charged to eastern manufacturers. b. relatively high real rates were due to the monopoly power of eastern financiers. c. relatively high rates reflected high lending risks associated with agricultural loans. d. Farmers' nominal rates were high, but real rates were actually less than those charged for most loans.
Social cost is the sum of private cost and
a. price b. quantity c. supply d. demand e. external cost
Canada is a major world producer and exporter of wheat and a great percent of its GDP is derived from this one good. The Canadian parliament may vote to restrict trade and justify its restrictions using the
a. cheap foreign labor argument b. antidumping argument c. national security argument d. infant industries argument e. diversity of industry argument
Which of the following shows the relationship between national income (GDP) and total spending?
a. Demand schedule b. Consumption curve c. Expenditure schedule d. Balance schedule