If Potential Output Equals $8 Billion and Actual Output Equals

question 18

Multiple Choice

If potential output equals $8 billion and actual output equals $9 billion, then this economy has a(n) :

• A)budget deficit.
• B)trade deficit.
• C)expansionary gap.
• D)recessionary gap.

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Definitions:

Precaution

A measure taken in advance to prevent something dangerous, unpleasant, or inconvenient from happening.

Extended Warm-Up

A longer duration of preparation activities before engaging in physical exercise, aiding in the prevention of injury and improving performance.

Pollen Counts

The measurement of the number of grains of pollen in a cubic meter of air, used as an indicator of possible allergy symptoms.

With Asthma

A chronic respiratory condition marked by episodes of airway constriction, leading to wheezing, shortness of breath, and coughing.