In Macroland,potential GDP Equals $20 Billion and Real GDP Equals

question 107

Multiple Choice

In Macroland,potential GDP equals $20 billion and real GDP equals $21.5 billion.Macroland has a(n) _________ gap equal to ________% of potential GDP.

• A) expansionary;7.5
• B) expansionary;7.0
• C) expansionary;1.5
• D) recessionary;7.5
• E) recessionary;7.0

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Definitions:

Bank Statement

A document that summarizes all the transactions entered into by an account holder within a specific time frame.

Outstanding Checks

Outstanding checks refer to checks that have been written and recorded in the check register but have not been cashed or cleared by the bank yet.

Service Charge

An additional fee charged for services rendered, often added to a bill in restaurants or for banking services.

Adjusted Cash Balance

The final amount of cash available in an account after all adjustments, including deposits, withdrawals, and any interest earned, have been accounted for.