In the Study of Short-Run Fluctuations in National Income,potential Income

question 25

Multiple Choice

In the study of short-run fluctuations in national income,potential income (output) is usually assumed to be

• A)falling at its average growth rate.
• B)moving together with potential output in neighbouring countries.
• C)constant.
• D)equal to actual income.
• E)irrelevant,as the economy is rarely there.

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Definitions:

Dividend Payout Ratio

The percentage of net income paid to shareholders in the form of dividends.

Earnings Per Share

A financial ratio that indicates the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of a company's profitability.

Dividend

A portion of a company's earnings distributed to its shareholders, typically in the form of cash payments or additional shares.

Dividend Payout Ratio

A financial metric indicating the proportion of earnings a company pays to its shareholders as dividends, typically expressed as a percentage.