A country reports that its actual real GDP is greater than its potential GDP. It must be that
A) more workers decided to quit work in order to enjoy leisure time.
B) the excess by which real GDP exceeds potential GDP is only temporary and eventually real GDP will decrease to be equal to potential GDP.
C) an error was made when calculating actual real GDP.
D) the price level is increasing.
E) None of the above answers is correct because it is impossible for a country's real GDP to exceed its potential GDP.
Correct Answer:
Verified
Q21: The Fair Labor Standards Act originally set
Q22: The length of time people spend in
Q23: If the minimum wage is set
A)below the
Q24: The production function displays
A)normal returns.
B)average returns.
C)diminishing returns.
D)increasing
Q25: The quantity of labor demanded definitely increases
Q27: When all other influences on firms' hiring
Q28: At full employment, actual-------------equals-------------
A)nominal GDP; potential GDP
B)potential
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