45. The output gap is the difference between:?

Question

45. The output gap is the difference between:

A. exports and imports.

B. government spending and revenues.

C. potential output and actual output.

D. nominal and real GDP.

E. value added and average labor productivity

46. If potential output equals $5 billion and actual output equals $4.5 billion, then this economy has a(n):

A. budget deficit.

B. trade deficit.

C. expansionary gap.

D. recessionary gap.

E. value-added gap.

Answer 1

C. potential output and actual output.

D. recessionary gap.

Answer 2

45. The output gap is the difference between:

corect answer:

C. potential output and actual output.

46. If potential output equals $5 billion and actual output equals $4.5 billion, then this economy has a(n):

correct answer:

D. recessionary gap.