If potential output equals $8 billion and actual output equals $10 billion, then this economy's output gap should be expressed as:
A. 20 percent.
B. 25 percent.
C. ?25 percent.
D. $2 billion.
Answer: B
Economics
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M2 does not include
A) Treasury bonds. B) passbook savings accounts. C) small-denomination time deposits. D) M1.
Economics
If real GDP has increased, which of the following statements is always true?
A) Nominal GDP has increased. B) Output has increased. C) Prices have remained the same. D) Output might have decreased if prices have risen enough.
Economics