The Table Below Provides Macroeconomic Data for a Hypothetical Economy

question 63

Multiple Choice

The table below provides macroeconomic data for a hypothetical economy.Dollar amounts are all in constant-dollar terms.
TABLE 19-1
-Refer to Table 19-1 What is the output gap in 2012?

• A)$420 billion
• B)$418 billion
• C)-$2 billion
• D)-$20 billion
• E)$2 billion

---

Definitions:

Cost Formula

An equation used to calculate the total costs involved in the production of goods or services, incorporating both fixed and variable components.

Flexible Budget

An adaptable budget that shifts based on variations in activity or volume.

Cleaning Equipment

Tools, appliances, or devices used for cleaning purposes, ranging from simple manual tools to complex machinery.

Cost Formula

A mathematical equation or method used to compute the total costs associated with the production or provision of goods or services.