The Physical and Biological Components of an Environment and the Relationships

question 23

Multiple Choice

The physical and biological components of an environment and the relationships between them make up a(n)

• A) species.
• B) biosphere.
• C) atmosphere.
• D) ecosystem.

---

Definitions:

Full Employment GDP

Full Employment GDP is the output level produced by an economy when all its labor and resources are employed at their maximum efficiency.

Multiplier

refers to a factor by which an initial change in spending will ultimately change the total economic output more than the initial amount.

Multiplier

In economics, a factor by which an initial change in spending will alter total economic output due to follow-on effects.

Inflationary Gap

A situation where the total demand in an economy exceeds the total supply at the current price level, often leading to inflation.