What does the GDP gap measure?
The GDP gap = potential real GDP ? actual real GDP. It measures the loss of potential output associated with unemployment which can never be realized (it measures the economic cost of unemployment).
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By itself, an increase in the price of oil shifts the
A) aggregate supply curve rightward and does not shift the aggregate demand curve. B) aggregate demand curve rightward and does not shift the aggregate supply curve. C) aggregate demand curve rightward and shifts the potential GDP line rightward. D) aggregate supply curve leftward and does not shift the aggregate demand curve. E) aggregate demand curve leftward and does not shift the aggregate supply curve.
Specialization and trade can create more wealth (output of goods and services): a. when we only trade for things we could not produce ourselves
b. when each person specializes in what they do relatively best and trade for the rest. c. only if we gain and other countries lose. d. only with certain nations.