The Table Below Shows Real GDP,potential GDP and the Unemployment

question 119

Multiple Choice

The table below shows real GDP,potential GDP and the unemployment rate for a hypothetical economy.
TABLE 30-3
-Refer to Table 30-3.What is the NAIRU in this economy?

• A)5.9%
• B)6.1%
• C)6.2%
• D)6.4%
• E)7.0%

---

Definitions:

Income Statement

A financial document that provides a summary of a company’s revenues, expenses, and profits/losses over a specific period, showing how the revenue is transformed into net income.

Variable Expenses

Expenses that vary directly with the amount of production or activity level.

Fixed Expenses

Costs that do not fluctuate with the volume of production or sales, remaining constant over a period, such as rent, salaries, and insurance premiums.

Net Operating Income

A gauge of a corporation's earnings from its main operating activities, not including the effects of interest and taxes.