Suppose Actual Output Is Less Than Potential Output

question 83

Multiple Choice

Suppose actual output is less than potential output. If the output gap measures the output loss due to the failure to achieve full employment, it can generally be concluded that the larger this output gap, the

• A)lower is frictional unemployment.
• B)greater is the employment rate.
• C)more upward pressure there is on prices.
• D)lower the deadweight loss of unemployment.
• E)greater is the unemployment rate.

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Definitions:

Blank Slate

The idea that individuals are born without built-in mental content, and all knowledge comes from experience or perception, also known as tabula rasa.

Nativists

Proponents of the theory that certain skills or abilities are innate and not acquired through learning or experience.

Inborn Characteristics

Traits or features present from birth, often considered to be genetically inherited or biologically determined.

Psychologists

Professionals who study cognitive, emotional, and social processes and behavior by observing, interpreting, and recording how individuals relate to one another and their environments.