An expansion occurs when either andor A potential output grows rapidly actual

# An expansion occurs when either andor a potential

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44.An expansion occurs when either _____ and/or _______. A.potential output grows rapidly; actual output rises above potential output.B. potential output grows slowly; actual output rises above potential outputC. potential output grows rapidly; actual output equals potential outputD. potential output grows rapidly; actual output falls below potential output AACSB: Analytical Skills Blooms: Understanding Frank - Chapter 20 #44 Learning Objective: 20- 03 Define potential output, measure the output gap, and use these concepts to analyze an economy’s position in the business cycle. Section: Output Gaps and Cyclical Unemployment

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45.Changes in the growth rate of potential output and deviations of actual output from potential output are two logical explanations for: AACSB: Analytical Skills Blooms: Understanding Frank - Chapter 20 #45 Learning Objective: 20- 03 Define potential output, measure the output gap, and use these concepts to analyze an economy’s position in the business cycle. Section: Output Gaps and Cyclical Unemployment
46.Recessionary gaps are: AACSB: Analytical Skills Blooms: Knowledge Frank - Chapter 20 #46 Learning Objective: 20- 03 Define potential output, measure the output gap, and use these concepts to analyze an economy’s position in the business cycle. Section: Output Gaps and Cyclical Unemployment

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47.The difference between the economy's potential output and its actual output at a point in time is called the: AACSB: Analytical Skills Blooms: Knowledge Frank - Chapter 20 #47 Learning Objective: 20- 03 Define potential output, measure the output gap, and use these concepts to analyze an economy’s position in the business cycle. Section: Output Gaps and Cyclical Unemployment
48.When actual output is less than potential output there is a(n): A. budget deficit.B. budget surplus.C. trade deficit.D.recessionary gap. AACSB: Analytical Skills Blooms: Knowledge Frank - Chapter 20 #48 Learning Objective: 20- 03 Define potential output, measure the output gap, and use these concepts to analyze an economy’s position in the business cycle. Section: Output Gaps and Cyclical Unemployment

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