The Output Gap Is the Difference Between

question 163

Multiple Choice

The output gap is the difference between

• A) exports and imports.
• B) government spending and government revenues.
• C) actual output and potential output.
• D) nominal GDP and real GDP.
• E) value added and average labour productivity.

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Definitions:

Newspaper Printing

The process of mass-producing copies of a newspaper document, whereby the news and other data are printed onto papers.

Economies of Scale

The cost advantage that arises with increased output of a product, where the average cost per unit decreases as the scale of production rises.

Inputs

Resources such as labor, materials, and capital used in the production process to create goods and services.

Output

The total amount of goods or services produced by a person, machine, company, or industry.