The Table Below Provides Macroeconomic Data for a Hypothetical Economy

question 78

Multiple Choice

The table below provides macroeconomic data for a hypothetical economy.Dollar amounts are all in constant-dollar terms. TABLE 19-1 Refer to Table 19-1 What is the output gap in 2015?

• A)$420 billion
• B)$418 billion
• C)-$2 billion
• D)-$20 billion
• E)$2 billion

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Definitions:

Public Outlay

The total amount of government spending, including expenditures on public services, infrastructure, and welfare programs.

Printing Money

The process by which the central bank increases the money supply by physically creating more currency.

Deflation

A decrease in the general price level of goods and services, often indicating a contraction in the supply of money and credit in the economy.

Natural Resources

Raw materials supplied by nature that are used to produce goods and services.