In Macroeconomics,what Is the Output Gap

question 67

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:

Money Supply

The entirety of monetary resources accessible in an economy during a specific period.

Rational

Characterized by clear and logical thinking, often with regard to fulfilling one's personal goals or making decisions based on empirical evidence and reasoning.

Unemotional Self-interest

Refers to actions motivated purely by personal gain without regard to emotions or moral considerations.

Q

Generally denotes quantity in economic and mathematical models, referring to the amount of goods or services.