Contractors That Advertise the Ability to Turn Home Attics or the Space

question 82

Multiple Choice

Contractors that advertise the ability to turn home attics or the space above a garage into living areas are most likely targeting their market based on the demographic variable of

• A)neighborhoods.
• B)family size.
• C)gender.
• D)usage rate.
• E)incomE.

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Definitions:

Potential Output

Potential output is the maximum amount of goods and services an economy can produce when it is most efficient and fully employed, without causing inflation.

Expansionary Gap

A situation where real GDP exceeds potential GDP, often leading to inflationary pressures due to high demand in an economy.

Equilibrium Output

The level of output where the quantity of goods and services produced equals the quantity of goods and services demanded.

Expansionary Gap

A situation in macroeconomics where the actual output in an economy exceeds the potential output, traditionally leading to inflation.