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:

Trich

Short for Trichomoniasis, a sexually transmitted infection caused by the parasite Trichomonas vaginalis.

Nyctalopia

A condition often referred to as night blindness, where individuals have difficulty seeing in low light or darkness.

Night Blindness

A condition that impairs the ability to see in low light or darkness.

Trich-

A prefix meaning related to hair.