In Which of the Following Cases Is the Output Gap

question 61

Multiple Choice

In which of the following cases is the output gap zero?

• A) When consumer con?dence declines due to bad economic performance.
• B) When the economy operates on its production possibility frontier.
• C) When unemployment increases due to an increase in real wages.
• D) When in?ation in the economy is equal to its target level.

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Definitions:

Interagency Networks

Collaborative frameworks connecting different organizations and agencies to achieve common objectives.

Intrapersonal Interventions

Strategies or actions taken to affect or improve an individual's internal processes, such as thoughts, feelings, and behaviors.

Discriminating

Making distinctions or judgments, often based on differences, which can lead to prejudiced or unfair treatment when misapplied.

Rational

pertains to acting or based on reason and logic rather than emotions or personal preferences.