The Output Gap Is the Difference Between

question 57

Multiple Choice

The output gap is the difference between

• A) the market-clearing level of output and the actual level of output, Ym-Y*.
• B) output demand and output supply.
• C) nominal output and real output.
• D) the Bank of Canada's output target and the market-clearing level of output.
• E) current and future total factor productivity.

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Definitions:

Stimulate

To encourage something to grow, develop, or become active.

Young-Helmholtz Trichromatic Model

A theory of color vision proposing that the human eye has three types of receptors with different sensitivities to different light wavelengths.

Primary Color

Fundamental colors (typically red, yellow, and blue) that cannot be created by mixing other colors and from which other colors can be derived.

Trichromatic Theory

A theory of color vision that suggests the human eye has three types of receptors sensitive to different wavelengths of light, corresponding to red, green, and blue colors.