What does the GDP gap measure?
What will be an ideal response?
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).
You might also like to view...
Regarding sexual harassment which of the following is NOT true
a. offenders can be same or opposite sex b. victims do not have to be harassed personally but affected through environment c. harasser must be superior employee d. harassment may occur without economic injury
If the cross-price elasticity of demand between Breeze Detergent and Faber Detergent is a relatively large positive number, then it indicates that
A) the two brands are probably made by the same company. B) consumers have a distinct preference for one brand versus the other. C) detergents are necessities. D) the two brands of detergent are close substitutes.