How Do We Define the Economy's Output Gap

question 144

Multiple Choice

How do we define the economy's output gap?

• A)the difference between actual GDP and potential GDP
• B)the level of total output that would be produced if capacity utilization is at its normal rate
• C)the difference between actual national income and desired aggregate expenditure
• D)the change in real GDP that results from economic growth
• E)the difference between nominal GDP and real GDP

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Definitions:

Uniform Commercial Code

A comprehensive set of laws governing commercial transactions in the United States, aimed at harmonizing state laws.

Enforcement

The act of compelling compliance with a law, rule, agreement, or order through the application of penalties for violations.

Conforming Goods

Products that meet the specifications and requirements set forth in a contract of sale.

Obligated

Being legally or morally bound to do something.