The U.S. economy is experiencing rising output, rising employment, rising incomes and falling unemployment. These conditions best describe a business cycle

To what does the "GDP gap" refer?

a. The difference between real and nominal GDP. b. The difference between this year's real GDP and last year's GDP. c. The difference between "full-employment" real GDP and actual real GDP. d. The difference between real GDP in the prior trough and real GDP in a current trough of the business cycle.

If price elasticity is 3.25, then demand is

A) inelastic. B) elastic. C) unitary. D) negative.