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.

---

Definitions:

Equity Method

The equity method is an accounting technique used by a company to record its investment in another company when it has significant influence but not full control, typically between 20% and 50% ownership.

Significantly Influenced

A condition where an investor has a considerable but not controlling interest in another company, able to affect its policies without direct control.

Non-Strategic Investments

Investments made without a long-term plan or alignment with the core goals of an investor or organization.

Short Or Long-Term

A classification that distinguishes between assets, liabilities, or goals based on the duration, typically under or over one year, respectively.