In 2009,actual Output in the U

question 65

Multiple Choice

In 2009,actual output in the U.S.was 4.7 percent below the potential output.This implies that the:

• A)unemployment in the U.S.was below its natural rate.
• B)poverty level in the U.S.was below average.
• C)there was a recessionary gap in this economy.
• D)there was an expansionary gap in this economy.
• E)there was an excess demand in this economy.

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Definitions:

Corporate Bond

A debt security issued by a corporation to raise capital, promising to repay the borrowed amount plus interest at a specified future date.

Nikkei

An abbreviation for the Nikkei 225 Stock Average, a leading index of Japanese stocks.

Japanese Stock Market

A collection of stock exchanges located in Japan, like the Tokyo Stock Exchange, where investors can trade shares of Japanese companies.