Author Question: The GDP gap is: a. the product of the potential real GDP and the equilibrium level of real GDP. b. ... (Read 60 times)

yoooooman · **on:** Jun 30, 2018

The GDP gap is:
a. the product of the potential real GDP and the equilibrium level of real GDP.
b. the distance between the current level of real gross domestic product and full employment real GDP.
c. the difference between potential real GDP and the equilibrium level of real GDP.
d. the difference between the present value of all of government's projected financial obligations and the present value of all projected future tax and other receipts.
e. the difference between the actual output of an economy and its potential output.

Question 2

Skateboards International of Mavericks Beach, California, was able to sell 20,000 skateboards at a price of 60 last year. This year it is able to sell only 12,000 of the same skateboards at a price of 60 . Evidently, Skateboard International has experienced a(n):
a. increase in quantity supplied.
b. increase in demand.
c. increase in supply.
d. decrease in demand.