An Inflationary Output Gap Is Defined to Be When the Current

question 41

Multiple Choice

An inflationary output gap is defined to be when the current level of output is:

• A) below full employment GDP.
• B) above full employment GDP.
• C) equivalent to full employment GDP.
• D) high enough to cause an unexpected amount of inflation.

---

Definitions:

Confidence

The feeling of trust or belief in someone or something; in statistics, it refers to the degree to which one can be certain in the accuracy of a result.

Proportion

A part, share, or number considered in comparative relation to a whole; a type of ratio.

Right-Handed

Describes individuals who inherently prefer using their right hand for tasks such as writing and eating, reflecting a neurological base for handedness.

Confidence Interval

A range of statistical outcomes from sample data, seen as probable to encompass the value of a not identified population parameter.