When actual real GDP is above natural real GDP, we say that
A) the output gap is positive.
B) the output gap is negative.
C) the output gap has been eliminated.
D) the output gap cannot be calculated.
A
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The production possibilities frontier model assumes all of the following except
A) the level of technology is fixed and unchanging. B) any level of the two products that the economy produces is currently possible. C) labor, capital, land and natural resources are fixed in quantity. D) the economy produces only two products.
A firm will shut down in the short run if
a. TR ? TC > TFC. b. TR + TC > TFC. c. TC ? TR > TFC. d. TFC + TVC > TR.
Measures of aggregate output have been published on a regular basis in the United States since
A) 1947. B) 1933. C) 1917. D) 1946.
The United States is considered by the Institute for Management Development to be the most competitive economy because
A. of selected restrictions on imports from Japan and Europe. B. of widespread entrepreneurship. C. of a high saving rate. D. U.S. residents are willing to work harder than anyone else is.