Author Question: A country reports that its actual real GDP is greater than its potential GDP. It must be that A) ... (Read 33 times)

Beheh · **on:** Jun 30, 2018

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) the price level is increasing.
D) an error was made when calculating actual real GDP.
E) None of the above answers is correct because it is impossible for a country's real GDP to exceed its potential GDP.

Question 2

Physical capital differences across countries can be seen in the fact that

A) more advanced economies typically have more sophisticated technology.
B) the iPhone's components are produced in 30 countries.
C) furniture factories in China use machines like those in North Carolina.
D) students in India study the same subjects as those in the United States.
E) advanced economies produce 53 percent of the world's income.