Multiple Choice
The output gap is the difference between
A) the market-clearing level of output and the actual level of output, Ym-Y*.
B) output demand and output supply.
C) nominal output and real output.
D) the Bank of Canada's output target and the market-clearing level of output.
E) current and future total factor productivity.
Correct Answer:

Verified
Correct Answer:
Verified
Q49: Keynes argued that a principal cause of
Q50: Compared to monetary policy,fiscal policy leads to<br>A)
Q51: Compared to fiscal policy,the monetary policy lag
Q52: If a shock results in a positive
Q53: In the New Keynesian model,an increase in
Q54: A traditional liquidity trap is problematic for
Q55: The natural rate of interest is<br>A) the
Q56: The main difference between the New Keynesian
Q58: An increase in the demand for investment
Q59: Crowding out of private expenditure occurs when<br>A)