In Macroeconomics,what Is the Output Gap

question 57

Multiple Choice

In macroeconomics,what is the output gap?

• A)the measure of output that could have been produced if the economy were fully employed
• B)the dead-weight loss of inflation
• C)the difference between nominal and real output
• D)the percentage change in real GDP
• E)the difference between Y and Y^*

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Definitions:

Long-term Investment

Investments made with the expectation that they will yield benefits or appreciation over a period extending beyond one year.

Dividends

Payments made by a corporation to its shareholder members, often derived from the company's profits.

Minority Active Investment

An investment where the investor holds a non-controlling interest in a company but is still actively involved in its management or operations.

Equity Method

An accounting technique used for recording investments in associate companies where the investment is initially recognized and subsequently adjusted for the investor’s share of the net assets of the investee, including recognized income or loss.