The output gap is A) the difference between target output and ...

[captainjonesify]

The output gap is
 
  A) the difference between target output and realized output.
  B) the difference between initial output and final output.
  C) the difference between market-clearing output and actual output.
  D) the difference between forecasted output and past output.

Question 2

In the IS model, assuming that the real interest rate does not change, an increase in autonomous ________ leads to a decrease in equilibrium saving.
 
  A) investment
  B) consumption
  C) net exports
  D) all of the above
  E) none of the above

[aliotak]

Answer to Question 1

C

Answer to Question 2

E