Use the Table Below to Answer the Following Questions

question 83

Multiple Choice

Use the table below to answer the following questions.
Table 10.3.3

-Refer to Table 10.3.3.When the economy is at its short- run macroeconomic equilibrium, the economy

• A)is also in a long- run macroeconomic equilibrium.
• B)has an inflationary gap.
• C)has neither an inflationary nor a recessionary gap.
• D)has a recessionary gap.
• E)is in an above full- employment equilibrium.

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Definitions:

Expected Return

The anticipated return on an investment, taking into account the probabilities of each possible outcome.

Independent

Free from external control and constraint, or in finance, referring to analysis or advice that is unbiased by conflicts of interest.

Negatively Correlated

Negatively correlated refers to two variables moving in opposite directions; as one increases, the other decreases, and vice versa.

Standard Deviations of Returns

A measure of the volatility or risk associated with the return on investment, indicating how much the returns can fluctuate over a period.