For an Economy Starting at Potential Output, a Decrease in Planned

question 95

Multiple Choice

For an economy starting at potential output, a decrease in planned investment in the short run results in a(n) :

• A)expansionary output gap.
• B)recessionary output gap.
• C)increase in potential output.
• D)decrease in potential output.

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Definitions:

Insurance Money

Funds received from an insurance company either as a claim settlement or benefit payment.

Short-rate Penalty

A Short-rate Penalty is a fee charged to policyholders who cancel their insurance policy before it expires, calculating the refund using a method that is less favorable than pro-rata.

Annual Premiums

The amount paid on an annual basis for insurance coverage, which can pertain to various types of insurance policies.

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Moving Vans are large vehicles used for transporting household or commercial goods from one location to another during relocation.