For an Economy Starting at Potential Output,an Increase in Planned

question 44

Multiple Choice

For an economy starting at potential output,an increase in planned investment,in the short run,results in a(n)

• A) expansionary output gap.
• B) recessionary output gap.
• C) increase in potential output.
• D) decrease in potential output.
• E) increase in cyclical unemployment.

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Definitions:

Distribution

In business, refers to the process of making a product or service available to the consumer or business user who needs it. In statistics, it describes the way in which values in a dataset are spread out.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values from the mean.

Squared Deviation

A statistical measure showing the dispersion of data points. It represents the square of the difference between an observed value and the mean of the dataset.

Mean

The mathematical average of a set of numbers, calculated by adding them together and dividing by the number of terms.