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. trade deficit.
B. budget deficit.
C. output gap.
D. full-employment rate.
Answer: C
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The number of people that are fired in a month is
A) a stock. B) a flow. C) both a stock and a flow. D) neither a stock nor a flow.
Brandon finds that Max Solutions can supply computers with the specific configuration he needs. His company enters into a contract with Max Solutions to provide 60 custom-built desktops at an agreed price. The contract between them will ensure each of the following, EXCEPT:
a. that Brandon's company does not back out and make a deal with someone else for a lower price. b. Max Solutions does not sell the computers to another company for a higher price. c. Max Solutions supplies the computers before the scheduled date of delivery. d. Brandon's company compensates Max Solutions in case of cancellation of order at a later date.
Gross domestic product is the
a. amount of final goods and services produced in an economy in a given year b. value of all goods and services, measured in current market prices, produced in the economy in a year c. value of final goods and services, measured in current market prices, produced in the economy in a year d. amount of all goods and services produced in an economy in a given year e. value of final goods and services produced in current market prices produced in an economy
Which of the following policies could the Fed use to lower the interest rate?
A. a tax cut B. selling government securities C. raising the discount rate D. reducing the required reserve ratio