The Difference Between Full-Employment Output and the Amount of Output

question 25

Multiple Choice

The difference between full-employment output and the amount of output demanded at current price levels is known as the:

• A) GDP gap.
• B) Deficit gap.
• C) Structural deficit.
• D) Natural rate of unemployment.

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Definitions:

Required Rate of Return

The minimum return an investor expects to earn on an investment, considering its risk level and alternative opportunities.

Margin

The difference between the selling price of a product or service and its cost, expressed as a percentage of the selling price.

Turnover

A measure of a company's sales or revenues relative to the average value of its assets, inventory, or employees.

Return on Investment

A measure of the financial gain or loss on an investment relative to the amount of money invested.