If the Output Gap Equals-$50 Million,then

question 97

Multiple Choice

If the output gap equals-$50 million,then

• A) cyclical unemployment equals the sum of structural and frictional unemployment.
• B) there is a recessionary gap.
• C) there is an expansionary gap
• D) there is no cyclical unemployment.
• E) potential GDP is less than actual GDP.

---

Definitions:

Absolute Thresholds

The minimum stimulus intensity required for a stimulus to be detected at least 50% of the time.

Gustav Fechner

A German philosopher, physicist, and experimental psychologist who founded psychophysics, quantitatively measuring the relation between physical stimuli and the sensations and perceptions they affect.

Awareness

The knowledge or perception of a situation or fact.

Subliminal Priming

The use of stimuli below the threshold of conscious perception to influence thoughts or actions.