In the Study of Short- Run Fluctuations in National Income

question 93

Multiple Choice

In the study of short- run fluctuations in national income, potential income (output) is usually assumed to be

• A)constant.
• B)moving together with potential output in neighbouring countries.
• C)irrelevant, as the economy is rarely there.
• D)equal to actual income.
• E)falling at its average growth rate.

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Definitions:

OASDI

The Old-Age, Survivors, and Disability Insurance program, which is the official name for Social Security in the United States, providing benefits for eligible retirees, disabled individuals, and their families.

Hospital Insurance

Coverage that pays for hospitalization expenses either partially or in full, typically part of health insurance.

Time and a Half

A pay rate that is 1.5 times the employee's regular hourly rate, typically awarded for overtime work.

Double Time

A rate of pay that is twice the employee's normal hourly rate, often applied to overtime work beyond a certain number of hours.