Defining $Y _ { t}$ As Current Output $\bar { Y } _ { t }$

question 37

Multiple Choice

Defining $Y _ { t}$ as current output, $\bar { Y } _ { t }$
As potential output, and $\tilde { Y } _ { t }$
As short-run fluctuations, how can the equation $\tilde { Y } _ { t } = \left( Y _ { t } - \bar { Y } _ { t } \right) / \bar { Y } _ { t }$
Be best defined?

• A) the percentage deviation of current output from potential output
• B) the difference between current output and potential output
• C) the percentage deviation of potential output from current output
• D) the deviation of current output from potential output
• E) the difference between potential output and current output

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Definitions:

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A variable or factor that can be used to forecast future outcomes or trends.

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