The Table Below Provides Macroeconomic Data for a Hypothetical Economy

question 63

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 2012?

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

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Definitions:

Land

A factor of production that refers to the natural resources used to produce goods and services.

Economist

A professional who studies, develops, and applies theories and principles of economics to understand how economies function and to inform policy.

Fixed Supply

A condition where the quantity of a good or resource available does not change, regardless of price.

Economic Rent

Payment to a factor of production in excess of what is needed to keep that factor in its current use.