The Gap Between Actual and Potential Output

question 12

Multiple Choice

The gap between actual and potential output

• A) is a measure of the costs of inflation.
• B) is a measure of what it costs society to tolerate less than full employment.
• C) is necessary to ensure economic efficiency.
• D) has always been positive.
• E) is calculated as 3 × (unemployment rate - 0.055) × potential GDP.

---

Definitions:

Biomes

Large ecological zones on Earth's surface, characterized by distinct types of vegetation, wildlife, and climate conditions.

Environmental Changes

Alterations to the natural environment caused by natural phenomena or human activities, affecting ecosystems, climate, and natural resources.

Extinction

is the process through which a species, genus, or family ceases to exist due to the death of its last member, often a result of environmental factors, human activities, or evolutionary changes affecting the species.

Premature Extinction

The early disappearance of a species from Earth, occurring before natural expectations due to human actions or environmental changes.