The Table Below Shows Data for Five Economies of Similar

question 137

Multiple Choice

The table below shows data for five economies of similar size.Real GDP is measured in billions of dollars.Assume that potential output for each economy is $340 billion. TABLE 24-1 Refer to Table 24-1.Which of the economies are experiencing an inflationary gap?

• A)Economies A and B
• B)Economies B and C
• C)Economies C and D
• D)Economies D and E
• E)none of the economies

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Definitions:

Cash Inflow

refers to the movement of money into a business, often from operations, financing, or investing activities, contributing to the company's cash balance.

Cash Outflow

The movement of money out of a business, project, or investment, usually in the form of expenses, purchases, or cash distributions.

Cash Flow Ratio

A metric that assesses the liquidity of a company by comparing its operating cash flow to its current liabilities.