Which of the Following Is Eliminated When the Economy's Output

question 103

Multiple Choice

Which of the following is eliminated when the economy's output is equal to full-employment GDP?

• A)The real GDP gap.
• B)The multiplier.
• C)Leakages and injections.
• D)The MPC.

---

Definitions:

Purchasing Price

The price at which an item or service is bought, including taxes and additional fees.

Third Party

An entity involved in a transaction or situation which is neither the buyer nor the seller, but may have an interest or role.

Real Expenditures

Spending adjusted for inflation, which reflects the actual purchasing power of money on goods and services, providing a more accurate measure of economic activity.

Medicare

A federal program in the United States that provides health insurance to people who are 65 or older, and to younger people with certain disabilities.