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    Exam 8: Economic Fluctuations, Unemployment, and Inflation
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    When Real GDP Grows More Slowly Than Potential GDP
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When Real GDP Grows More Slowly Than Potential GDP

Question 120

Question 120

Multiple Choice

When real GDP grows more slowly than potential GDP,


A) nominal GDP rises.
B) the unemployment rate falls.
C) labor productivity falls.
D) the unemployment rate rises.

Correct Answer:

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