The Difference Between the Economy's Potential Output and Its Actual

question 46

Multiple Choice

The difference between the economy's potential output and its actual output relative to its potential output at a point in time is called the:

• A)budget deficit.
• B)trade deficit.
• C)output gap.
• D)full-employment rate.

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Definitions:

Compliance

The act of conforming to or following rules, standards, or laws.

Resist

To withstand, strive against, or oppose a force or influence.

Compliance Tactics

Strategies used to persuade or influence others to go along with one's request or command, often studied in social psychology.

Scarcity

An economic condition where demand exceeds supply, leading to limited availability of resources.