The Economy's Output Gap Is Defined as the

question 67

Multiple Choice

The economy's output gap is defined as the

• A)difference between actual GDP and potential GDP.
• B)level of total output that would be produced if capacity utilization is at its normal rate.
• C)difference between actual national income and desired aggregate expenditure.
• D)result of economic growth.
• E)difference between nominal GDP and real GDP.

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Definitions:

Endo-

A prefix meaning within or inside, used in medical and scientific terms to denote inner structures or conditions.

Inter-

A prefix meaning 'between' or 'among'.

Ex-

A prefix often denoting out of, from, or not having something.

Retro-

A prefix used in English, denoting backwardness, previousness, or action in a reverse direction.