The difference between aggregate economic activity and potential output is called ________
A) the business cycle
B) the output gap
C) a recession
D) a trough
E) a co-movement
B
You might also like to view...
A tradesman who purchases diamonds in a country where the price is low and sells them in another country where the price is high, can be said to be practicing:
a. arbitrage. b. speculation. c. derivatives trading. d. forecasting.
Growth in employment can result from either an increase in labor supply or an increase in labor demand
a. True b. False
By keeping the basket of goods and services the same when computing the CPI, the Bureau of Labor Statistics isolates the effects of price changes from the effect of any quantity changes that might be occurring at the same time
a. True b. False Indicate whether the statement is true or false
If the Federal Open Market Committee decides to decrease the money supply, it will
a. sell government bonds. b. purchase corporate bonds. c. purchase government bonds. d. reduce interest rates.