The output gap is:

a) The difference between this year's and last year's output
b) The difference between this year's and next year's output
c) The difference between actual and potential output
d) The difference between actual and expected outputs


Answer: c) The difference between actual and potential output

Economics

You might also like to view...

The introduction of a new currency is generally sufficient to achieve a permanent reduction in the inflation rate

a. True b. False Indicate whether the statement is true or false

Economics

The monetary expansion of the mid-1990s was expected to lead to a currency appreciation

a. True b. False Indicate whether the statement is true or false

Economics

The following graph is the production possibility curve for a three-person economy, with workers Janna, Drew, and Karl.The slope of the PPC between points X and Y is determined by ________ opportunity cost.

A. Janna's B. Kari's C. Drew's D. Janna and Drew's

Economics

On a balance sheet, stockholders' equity is listed as an asset

Indicate whether the statement is true or false

Economics