Which of the Following Correctly Describes the Meaning of the Expression

question 86

Multiple Choice

Which of the following correctly describes the meaning of the expression Y < Y*?

• A)actual output is less than potential output - a recessionary gap
• B)potential output is less than actual output - a recessionary gap
• C)actual output is less than potential output - an inflationary gap
• D)potential output is less than actual output - an inflationary gap

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Definitions:

Contributory Negligence

A defense in torts law where, if the plaintiff is found to be partly at fault for the accident, they may be barred from receiving any compensation.

Standard of Care

The degree of attention, caution, and prudence that a reasonable person in similar circumstances would exercise.

Unreasonable Risk

A level of danger that surpasses what is considered acceptable or safe in a given context.

Comparative Negligence

A legal doctrine that allocates damages based on the degree of fault of each party involved in an accident.