The Output Gap Is the

question 67

Multiple Choice

The output gap is the

• A)difference between nominal and real output.
• B)percentage change in real GDP.
• C)difference between Y and Y^*.
• D)dead- weight loss of inflation.
• E)measure of output that could have been produced if the economy were fully employed.

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Definitions:

Dividend Yield

A measurement comparing the yearly dividends issued by a business to its current market share price.

Dividend Growth Rate

The annualized percentage rate of growth of a company's dividend payments, indicating how quickly the dividend payments have increased over a specific period of time.

Required Returns

The smallest yield an investor predicts to receive from investing in a particular venture or asset.

Constant

A value that does not change.