17 If potential GDP for the third quarter of 2013= $20.4billion, and the deviation from potential GDP for the third quarter of 2013= $1.6billion, then Real GDP for the third quarter of 2013 equals

A.

$6.5 billion.

B.

$18.8 billion.

C.

$22 billion.

D.

$32.64 billion.

18 Classical economics refers to the perspective that the business cycle can be explained

A.

using equilibrium analysis.

B.

using disequilibrium analysis.

C.

by shortrun macroeconomic instability.

D.

by longrun macroeconomic fluctuations.

19 If potential GDP for the third quarter of 2012= $20.4billion, and the deviation from potential GDP for the third quarter of 2012= $1.6 billion, then the output gap was

A.

7.8%.

B.

12.8%

C.

18.8%.

D.

32.6%.