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:

Cognitive Processes

The mental actions or operations involved in acquiring knowledge and understanding through thought, experience, and the senses.

Categorization Task

Involves grouping items into categories based on shared characteristics or features, facilitating organization and recognition of similar objects or concepts.

Greenfield

A refers to Patricia Greenfield, a psychologist known for her work on cultural effects on cognitive development.

Wolof Children

Refers to young individuals from the Wolof ethnic group, primarily found in Senegal, Gambia, and Mauritania, often studied in cross-cultural research on language and development.