In 2009, actual output in the U.S. was 4.7 percent below the potential output. This implies that:
What will be an ideal response?
there was a recessionary gap in the economy.
"When actual output falls short of potential output, the economy suffers a recessionary gap."
You might also like to view...
In the United States, the inflation rate since 1999 generally was
A) lower than between 1979 to 1981. B) higher than between 1979 to 1981. C) higher than in the 1980s. D) much higher than between 1985 to 1995. E) negative.
During the recessions of 2001 and 2008-09,
A) all measures of the unemployment rate (U-1 through U-6 ) increased. B) only the broader measures of the unemployment rate increased. C) only the narrower measures of the unemployment rate increased. D) the labor force participation rate for women increased. E) the labor force participation rate for men increased.
In the figure above, if the government starts to provide university education at no charge, in the long run, the wage rate of high-skilled workers will ________ and the wage rate of low-skilled workers will ________
A) rise; fall B) fall; rise C) fall; fall D) rise; rise
The purchase of a new machine to replace the one that is worn out is:
a. not included in GDP. b. included in gross investment. c. considered a personal consumption expenditure. d. not included in GNP. e. an increase in inventories.