The percentage deviation of real GDP from potential GDP is called
A) nominal GDP.
B) the output gap.
C) the multiplier.
D) Okun's law.
B
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Concentration ratios are generally computed for ________ markets
A) local B) regional C) national D) global
Use the above table. Assuming constant opportunity costs, if countries Alpha and Beta specialize based on comparative advantage, then
A) Alpha should specialize in knives and Beta should specialize in forks. B) Alpha should specialize in forks and Beta should specialize in knives. C) Alpha should specialize in producing both items. D) Beta should produce both items.
An increase in government purchases will increase GDP by an amount equal to the change in government purchases times the expenditure multiplier
a. True b. False
We define net exports to be:
A. exports minus imports. B. imports divided by exports. C. imports plus exports. D. imports minus exports.