If Potential Output Equals $8 Billion and Actual Output Equals

question 66

Multiple Choice

If potential output equals $8 billion and actual output equals $10 billion, then this economy has an output gap equal to:

• A) $2 billion.
• B) 20 percent.
• C) 25 percent.
• D) -25 percent.

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Definitions:

SPSS

Statistical Package for the Social Sciences, a software package used for data management and statistical analysis.

T Test

A statistical test used to compare the means of two groups and determine if they are significantly different from each other.

T Statistic

A type of statistic used in hypothesis testing, especially for small sample sizes, calculated to compare an observed sample mean to a theoretical population mean.

Straight-line Relationship

A linear connection between two variables, represented graphically by a straight line, indicating a constant rate of change.