If Potential Output Equals $8 Billion and Actual Output Equals

question 72

Multiple Choice

If potential output equals $8 billion and actual output equals $7 billion, then this economy has an output gap equal to:

• A) -$1 billion.
• B) $1 billion.
• C) 12.5 percent.
• D) -12.5 percent.

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Definitions:

Proposal

A formal offer or plan put forward for consideration or discussion by others.

Work Plan

A detailed proposal of how to accomplish a project or task, including the stages, tasks, resources, timelines, and responsibilities involved.

Customers List

A compilation of information about customers who have engaged with a business, often used for marketing or customer service purposes.

Products and Services List

An organized inventory of the items and services offered by a business, often included in financial, sales, and operational documents.