If Potential Output Equals $8 Billion and Actual Output Equals

question 50

Multiple Choice

If potential output equals $8 billion and actual output equals $10 billion, then this economy's output gap should be expressed as:

• A)$2 billion.
• B)20 percent.
• C)25 percent.
• D)−25 percent.

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Definitions:

Sales Price

The amount a customer pays to purchase a product or service.

Replacement Warranty

A guarantee provided by a seller or manufacturer to repair or replace defective goods within a certain period after purchase.

Repair Defects

The process of identifying and correcting flaws or issues in products or systems.

FUTA

The Federal Unemployment Tax Act (FUTA) is a United States federal law that imposes a payroll tax on businesses to fund state workforce agencies.