When Actual Output Is Less Than Potential Output,there Is A(n)

question 159

Multiple Choice

When actual output is less than potential output,there is a(n)

• A) budget deficit.
• B) budget surplus.
• C) trade deficit.
• D) recessionary gap.
• E) expansionary gap.

Recognize the relationship between a stock's beta and its standard deviation.

Understand the concepts of short-run and long-run equilibriums in the aggregate demand-aggregate supply model.

Explain the mechanisms that move an economy from short-run to long-run equilibrium.

Identify and describe the characteristics of expansionary and recessionary gaps.

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Definitions:

Behavioral

Pertaining to actions or reactions that an individual displays in response to their environment or stimuli.

Functionalism

A theoretical perspective in sociology and psychology that focuses on the roles or functions that an institution, behavior, or mental state serves in society or an organism.

Adaptive Value

The extent to which a trait or behavior increases the survival and reproduction chances of an organism in its environment.

Mental Processes

Internal cognitive operations that include thinking, perceiving, problem-solving, and remembering.