If Potential Output for an Economy Equals $8 Billion, and Actual

question 54

Multiple Choice

If potential output for an economy equals $8 billion, and actual output equals $7 billion, then this economy has a(n) :

• A)budget deficit.
• B)trade deficit.
• C)expansionary gap.
• D)recessionary gap.

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Definitions:

Personal Goals

Individual objectives set by a person aiming to achieve personal growth or accomplish specific tasks.

Expectancy Theory

A theory of motivation based on the premise that the amount of effort people expend depends on how much reward they can expect in return.

Emotional Side

The aspect of a person's character that involves emotions and feelings, impacting how they react to certain situations or interact with others.

Leaders

Persons who guide, direct, influence, or inspire others towards achieving a common goal or vision.