In Macroland Potential GDP Equals $20 Billion and Real GDP

question 63

Multiple Choice

In Macroland potential GDP equals $20 billion and real GDP equals $19.2 billion. Macroland has a(n) ________ gap equal to ________ percent of potential GDP.

• A)expansionary; 8
• B)expansionary; 4
• C)recessionary; −8
• D)recessionary; −4

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Definitions:

Base Salaries

The initial rate of compensation given to an employee, not including any extra benefits, bonuses, or raises, which serves as a foundational income.

Merit Raise

An increase in salary given to an employee based on their job performance, as a reward for their contributions to the organization.

Base Wage

The initial rate of compensation an employee receives, excluding overtime, bonuses, or other additional payments.

Spot Bonuses

Immediate, unplanned rewards given to employees for exceptional performance or achievements.