When an Economy's Actual Output Is Greater Than Its Potential

question 161

Multiple Choice

When an economy's actual output is greater than its potential at some point in time, we say that it is experiencing:

• A) a positive output gap.
• B) a negative output gap.
• C) inflation.
• D) deflation.

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Definitions:

Bit

An abbreviated term for the words binary digit. The bit is the smallest unit of information in the binary numbering system. It represents a decision between one of two possible and equally likely values or states. It is often used to represent an off or on state as well as a true or false condition.

Done Bit

A status bit that indicates the completion of a task or instruction in programming, often used in PLCs.

Timing Bit

A specific bit in a digital system used to provide a timing signal or to time operations.