If the Economy's Full-Employment Output Is $6 Trillion, Actual Output

question 147

Multiple Choice

If the economy's full-employment output is $6 trillion, actual output is $3.5 trillion, and the budget deficit is $20 billion, the deficit in this case is known as a

• A) natural employment deficit.
• B) cyclical deficit.
• C) structural deficit.
• D) debt deficit.

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Definitions:

Consensus

Consensus is the general agreement reached by a group as a whole, often used in the context of decision-making processes where unity and collective support are sought.

Bretton Woods

Refers to the international monetary system established in 1944 in Bretton Woods, New Hampshire, which set up rules for commercial and financial relations among the world's major industrial states.

International Monetary Fund

The International Monetary Fund (IMF) is an international organization that aims to promote global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.

State Planning

Involves government-led initiatives to direct economic activity and resources towards specific goals, often seen in socialist or communist economies aiming for equitable resource distribution and industrial management.