If Potential Output Equals $8 Billion and Actual Output Equals

question 5

Multiple Choice

If potential output equals $8 billion and actual output equals $9 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:

Circadian Rhythms

Natural, internal processes that regulate the sleep-wake cycle and repeat roughly every 24 hours.

Adrenal Glands

Small glands located atop the kidneys that produce a variety of hormones, including adrenaline and cortisol, which are involved in stress response.

Precocious Puberty

The early onset of puberty, occurring significantly before the typical age range for pubertal development.

Menarche

The occurrence of the first menstrual cycle in female humans.