Question: In macroeconomics, the output gap is the difference between A) output in the current year and output in the base year . B) output and

In macroeconomics, the "output gap" is the difference between

A) output in the current year and output in the base year

. B) output and employment.

C) potential real national income and actual real national income.

D) real GNP and real GDP

. E) real and nominal national income.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Q:

Long-term debt ratio 0.3 Times interest earned 8.0 Current ratio 1.1 Quick ratio 1.0 Cash ratio 0.3 Inventory turnover 4.0 Average collection period 73 days 1.A. Use the above information from the...

Q:

Please answer the following questions Question 9 Price LRAS level SRAS SRASI AD2 .AD, Y , Yo Real GDP per year If the economy is at point a, [ Choose ] a and b. b and d. ) If the economy is at point...

Q:

ANSWER THE FOLLOWING QUESTIONS 1. On Farmer Jones' farm, only honey is produced. There are two ways to make honey: with and without bees. A bucket of artificial honey, absolutely indistinguishable...

Q:

Question 1 (5 Marks) In a certain economy, the components of planned spending are given as: Cd=600+0.8(Y-T)-350r, IP=200-450r, G=250, NX=20, T=300 a) Find the relationship between planned aggregate...

Q:

Which of the following best explains the difference between a government debt and a budget deficit? A. A deficit occurs when government spending exceeds tax revenue in a financial year, and the...

Q:

Answer with explanation 1. Explain the concept Opportunity Cost. Why is the concept central to the study of Economics? (16 marks) 2. Outline THREE reasons for the survival of small firms in the Irish...

Q:

How the Fed will respond to the coming inflation scare Don't expect the Federal Reserve to tighten monetary policy in 2021- even if inflation comes in higher than central bankers are forecasting. Tim...

Q:

How the Fed will respond to the coming inflation scare Don't expect the Federal Reserve to tighten monetary policy in 2021- even if inflation comes in higher than central bankers are forecasting. Tim...

Q:

echr Section C Question 5 Production Function Estimation. Suppose that you have a random cross section of firm- level data, with information on output, labor and capital. In logs, (uni, hi, k : i =...

Q:

Assignment (Short-Answer and Algebraic Questions): (The numbers in square brackets give the breakdown of the points for various parts of each question. please explain your answers.) 1. This questions...

Q:

Question 1(Multiple Choice Worth 1 points) (02.06 MC) Suppose Country 'X' is producing an output of 300 units of a certain good at $3 per unit in 2017. With time, the price level rises from $3 per...

Q:

Exercise In exercise, Use the data from the indicated exercise in this section. Use computer software (such as STATDISK, Minitab, Excel, or StatCrunch) or a TI-83/84 Plus calculator to generate a...

Q:

a. Briefly explain the concept of support. b. If a taxpayer provides 50% or less of another persons support, is it possible for the taxpayer to claim a dependency exemption? Explain. c. Does support...

Q:

Find all solutions. 8 x 3 - 1 0 x = - 3 8 x 2

Q:

Problem 3 As reported by the College Entrance Examination Board in National College-Bound Senior, the mean (non-reentered) verbal score on the Scholastic Assessment Test (SAT) in 2017 was 428 points...

Q:

Verify whether the Cauchy-Riemann equations are satisfied for the following function: sinh(kz)

Q:

1) Construct the representative household's utility maximisation decentralised problem such that a4 = 24-1e#+Et, whereby & N 0, 02); find the optimal rules attendant on consumption, labour and...

Q:

Among a group of 5 8 programmers, who know either Java or Python or both, 1 5 only know Java and 1 3 only know Python. What is the probability of randomly choosing a programmer who knows both...

Q:

A greater tendency to create winwin situations.

Q:

Improving creative problem-solving ability.

Q:

1. Discuss the following statements: (a) A circle becomes a straight line when viewed on a very small scale. (b) Breaking patterns creates change.