If the Economy's Full-Employment Output Is $12 Trillion, Actual Output

question 5

Multiple Choice

If the economy's full-employment output is $12 trillion, actual output is $12 trillion, and the budget deficit is $40 billion, the deficit in this case is known as a

• A) natural employment deficit.
• B) cyclical deficit.
• C) structural deficit.
• D) fiscal deficit.

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Definitions:

Incremental Change

Gradual modifications or improvements made over time to processes, products, or systems.

Wheel of Innovation

A conceptual model outlining the cyclical process of innovation, from idea generation through to implementation and market introduction.

Experimenting

The process of carrying out trials or tests to discover, prove, or evaluate the effectiveness or truth of something.

Feasibility

The measure of how possible or practical the implementation of a project, plan, or process is, usually considering economic, technical, and logistical factors.