The Size of the Output Gap Depends on Which of the Following

question 10

Multiple Choice

The size of the output gap depends on which of the following?

• A) The ease with which the unemployed can find work.
• B) The difference between consumption spending and total output.
• C) How far businesses have built up inventories during an economic slowdown.
• D) How far an economic downturn has destroyed economic capacity in a country.

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Definitions:

Agent

An individual or entity that acts on behalf of another person or group, often in a negotiation or transaction.

Target

A specific goal or objective that is aimed to be achieved.

Coercive Power

Power that is based on an agent’s ability to cause an unpleasant experience for a target.

Agent

An individual or entity authorized to act on behalf of another person or organization to create legal relations with third parties.