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:

Behavioural Description Interviews

An interviewing technique where candidates are asked to describe past behavior and experiences relevant to the position they're applying for.

Future Behaviour

Predicted actions or conduct of an individual or group, based on historical data, trends, or psychological analysis.

Unplanned Questions

Questions that arise spontaneously or are not predetermined in an interview or assessment context, often to gauge authentic responses.

Predictors of Future Behaviour

Variables or indicators used to forecast an individual's future actions based on past or present data.