What is the inflation gap? What is the output gap?
What will be an ideal response?
The inflation gap is the difference between the current inflation rate and a target rate, and the output gap is the percentage difference between real GDP and potential GDP.
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The birthrate in the United States decreased during the 1960s, and as a result
A) structural and frictional unemployment increased. B) cyclical unemployment declined. C) cyclical unemployment increased. D) the natural rate of unemployment declined.
Which of the following statements about the history of inflation in the U.S. is true?
a. Inflation averaged roughly 2% from 1950-19-65, but has fallen since then. b. Inflation has averaged roughly 2% since 1950. c. Inflation averaged roughly 2% from 1950-1965, rose until the early 1980s, and has fallen slowly since. d. Inflation has gradually climbed since the 1950s.
A firm is producing 100 racing bicycles at a total cost of $84,000. The firm's fixed cost is $24,000. What is the average variable cost?
a. $840 b. $640 c. $600 d. $240
Two firms in an industry act as a cartel, with each firm agreeing to charge a price of $16 and sell two units of output. If one of them cheats and produces two more units of output, the cheating firm's total revenue increases by ______ and the other firm's total revenue decreases by ______.
Fill in the blank(s) with the appropriate word(s).