The Output Gap Is the

question 67

Multiple Choice

The output gap is the

• A)difference between nominal and real output.
• B)percentage change in real GDP.
• C)difference between Y and Y^*.
• D)dead- weight loss of inflation.
• E)measure of output that could have been produced if the economy were fully employed.

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Definitions:

Sample Variance

A statistical measure of the dispersion of observations in a sample dataset around the sample mean.

T Distribution

A family of probability distributions that can be used to develop an interval estimate of a population mean whenever the population standard deviation s is unknown and is estimated by the sample standard deviation s.

Variance

A measure of the spread between numbers in a data set, indicating how much the numbers differ from the mean.

Independent Samples

Samples drawn from different populations without any pairing or matching between the samples.