GDP Can Be Represented by the Equation: GDP = L

question 9

Multiple Choice

GDP can be represented by the equation: GDP = L x [E/L] x [GDP/E]. In this equation, the term [E/L] represents

• A)the ratio of the population unemployed.
• B)the level of employment at a given period of time.
• C)the labour force.
• D)the productivity of labour.
• E)one minus the unemployment rate.

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Definitions:

Accounting Equation

The foundation of double-entry bookkeeping, representing the relationship: Assets = Liabilities + Equity.

Debit-Credit Analysis

A fundamental accounting technique that balances debits and credits in financial transactions to maintain the equation of assets = liabilities + equity.

Credit Services

Financial services that provide customers with credit facilities to purchase goods or services, including loans, credit cards, and lines of credit.

GAAP

Generally Accepted Accounting Principles, a standard framework of guidelines for financial accounting used in any jurisdiction.