A country reports that its actual real GDP is greater than its potential GDP.It must be that
A) an error was made when calculating actual real GDP.
B) the price level is increasing.
C) more workers decided to quit work in order to enjoy leisure time.
D) the excess by which real GDP exceeds potential GDP is only temporary,and eventually real GDP will decrease to be equal to potential GDP.
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
Q19: The Monetarist model expands the Keynesian model
Q20: If New Zealand is operating at potential
Q21: The sustainable upper limit of real GDP
Q22: The _ describes the relationship between the
Q23: Which of the following statement or statements
Q25: Over the business cycle,real GDP fluctuates around
A)the
Q26: The idea of "diminishing returns" means that
Q27: The production function is a relationship between
Q28: Choose which statement is most correct.
A)Real GDP
Q29: As an economic expansion approaches its peak,it
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents