Which of the Following Democracies Best Resembles the United States

question 3

Multiple Choice

Which of the following democracies best resembles the United States both in terms of history and its approach to civil rights and liberties?

• A) The United Kingdom
• B) The Netherlands
• C) France
• D) Portugal
• E) Mexico

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Definitions:

Recessionary Gap

A situation where the real GDP is lower than the potential GDP at full employment, indicating underutilized resources.

Inflationary Gap

A scenario where aggregate demand exceeds aggregate supply at the level of full employment, leading to an increase in general price levels.

Equilibrium GDP

The level of Gross Domestic Product where aggregate supply equals aggregate demand, indicating an economy in balance without tendency to change.

Full Employment GDP

The total market value of all goods and services produced domestically by a country when all available resources are fully utilized.