The difference between the economy's potential output and its actual output relative to its potential output at a point in time is called the:
A. output gap.
B. trade deficit.
C. budget deficit.
D. full-employment rate.
Answer: A
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According to this Application, ________ developed countries and ________ developing countries have a value-added tax
A) virtually all; many B) most; very few C) very few; very few D) very few; most
The process of supply and demand
A) guarantees shortages or surpluses will never exist. B) guarantees the greatest amount of social happiness. C) ensures that people will be able to obtain all that they need. D) generates useful information regarding the relative scarcities of goods and services. E) accomplishes all of the above.
A cartel is:
a. a joint venture of two companies. b. a joining of firms for the purpose of fixing prices and controlling output. c. a breaking up of a company into two or more parts. d. the joining of industry with government to solve a specified problem. e. the joining of two firms with unrelated products.
In the 1980s, the number of bank failures increased dramatically in the United States, most of which were uninsured
a. True b. False Indicate whether the statement is true or false