The Table Below Shows Data for Five Economies of Similar

question 105

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.How is the adjustment asymmetry demonstrated when comparing Economy A to Economy E?

• A)The size of the output gap is the same in Economies A and E,but wages are rising in A and falling in E.
• B)The output gap is larger in Economy A,yet wages are changing more slowly.
• C)The output gap is much larger in Economy E,so wages are changing at a faster rate.
• D)The size of the output gap is the same in Economies A and E but wages are falling more slowly in A than they are rising in E.
• E)There is insufficient data with which to observe the adjustment asymmetry.

---

Definitions:

Personal Traits

Inherent characteristics or qualities that define an individual's behavior, attitude, and personality.

Entrepreneurs

Individuals who initiate, manage, and take on the risks of a business or enterprise, often bringing innovation and change.

Entrepreneurial Success

Achieving desired business outcomes, which can include profitability, growth, market share, and sustainability in entrepreneurship.

Debt Financing

The raising of capital through borrowing, which typically involves taking out loans or issuing bonds.