The Table Below Shows Data for Five Economies of Similar

question 84

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:

Markup

The amount added to the cost price of goods to cover overhead and profit.

Markdown

A reduction from the original or listed price of an item, often used as a strategy to increase sales or clear out inventory.

Timing

The selection of the most appropriate moment to execute an action in order to maximize its effectiveness or success.

Final Selling Price

The ultimate price at which a product or service is sold to the consumer, including all discounts, promotions, and negotiations.