The Amount by Which Actual Output Falls Short of Potential

question 74

Multiple Choice

The amount by which actual output falls short of potential output is called:

• A)a deadweight loss.
• B)real GDP.
• C)a recessionary gap.
• D)the full-employment output.
• E)an expansionary gap.

---

Definitions:

Proxy Fights

Proxy fights occur during shareholders' meetings when opposing groups of shareholders solicit votes from other shareholders to win control over the company's board of directors.

Board of Directors

A group of elected or appointed members who jointly oversee the activities of a company or organization.

Efficient Market Hypothesis

The theory that all existing information is already reflected in securities prices, thus making it impossible to consistently achieve higher returns.

Dissemination

The process of spreading information, knowledge, or ideas to a large number of people.