If Potential Output Equals $8 Billion and Actual Output Equals

question 17

Multiple Choice

If potential output equals $8 billion and actual output equals $7 billion,then this economy has a(n)

• A) budget deficit.
• B) trade deficit.
• C) expansionary gap.
• D) recessionary gap.
• E) value-added gap.

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Definitions:

Mental Impairment

A condition that affects a person's thinking, feeling, mood, or ability to relate to others, significantly affecting daily functioning.

Persuasion

The act of convincing someone to do or believe something through reasoning or argument.

Undue Influence

Manipulation or pressure exerted over another person, undermining their free will and leading to an unfair agreement or decision.

Liable

Being legally responsible or obligated to compensate for harm caused by one's actions or negligence.