If Potential Output Equals $8 Billion and Actual Output Equals

question 94

Multiple Choice

If potential output 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:

Wishes

Expressions of desire or hope for something to happen.

Goals

Specific, actionable objectives intended to guide behavior and measure success.

Specific Target Point

A clearly defined goal or objective that one party aims to achieve in a negotiation or a set of negotiations.

Resistance Point

The resistance point is the threshold in negotiations beyond which a party will not go; it represents the worst acceptable outcome.