A Recessionary Output Gap Implies That

question 104

Multiple Choice

A recessionary output gap implies that

• A)the demand for all factor services will be relatively low.
• B)the intersection of AD and AS occurs where real GDP exceeds potential output.
• C)the economy's resources are being used at more than their normal capacity.
• D)there is upward pressure on wages.
• E)there is excess demand for most factors of production.

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Definitions:

Closing Costs

Expenses over and above the price of the property in a real estate transaction, such as taxes, attorney's fees, and title insurance.

Escrow Agent

A neutral third party responsible for holding assets or documents until certain conditions of an agreement are met.

Lender

An individual or institution that provides funds to another with the expectation of repayment plus interest.

Title Examination

The process of reviewing public records to determine and confirm a property's legal ownership, and to identify any claims, defects, or encumbrances that may affect the title.