If the Potential Output of an Economy Is Worth $440

question 5

Multiple Choice

If the potential output of an economy is worth $440 billion and the actual output during a particular year was $435 billion, the output gap is

• A)­​1.14 percent
• B)​2.2 percent
• C)​­5 percent
• D)​1.1 percent

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Definitions:

Integrated

Refers to the process of combining or coordinating separate elements to form a cohesive whole.

Rituals

Are prescribed procedures for conducting ceremonial acts, often with a symbolic significance in societies.

Beliefs

Convictions or acceptances that certain things are true or real, often held without immediate evidence.

Organic Solidarity

A concept of social cohesion that arises when the people in a society are interdependent, but hold to varying interests and values.