In Macroland Potential GDP Equals $20 Billion and Real GDP

question 63

Multiple Choice

In Macroland potential GDP equals $20 billion and real GDP equals $19.2 billion. Macroland has a(n) ________ gap equal to ________ percent of potential GDP.

• A)expansionary; 8
• B)expansionary; 4
• C)recessionary; −8
• D)recessionary; −4

---

Definitions:

Cold War

The period of geopolitical tension and ideological conflict between the Soviet Union and the United States and their respective allies after World War II, lasting until the early 1990s.

Henry Luce

An influential American magazine publisher who co-founded Time, Life, and other significant publications in the 20th century.

Freedom

The capacity to behave, communicate, or ponder freely, without any restrictions or barriers.

Cold War

The Cold War was a period of geopolitical tension between the Soviet Union and the United States and their respective allies, the Eastern Bloc and the Western Bloc, after World War II.