The Output Gap Is

question 223

Multiple Choice

The output gap is

• A)negative if potential GDP is smaller than real GDP.
• B)a measure of potential output.
• C)negative if potential GDP is larger than real GDP.
• D)constant throughout the business cycle.
• E)shrinking all the time.

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Definitions:

Alarm Reaction

The initial stage in the body's response to stress, involving the release of adrenaline and other stress hormones.

Resistance Stage

The second phase of the stress response, where the body mobilizes resources to cope with a stressor.

Refractory Stage

A period following an action potential during which a neuron is incapable of firing again.

Exhaustion Stage

The final stage of the stress response, characterized by the body's inability to continue to adapt to stressors, leading to decreased function and possible health breakdown.