Use the Following Information to Answer the Question(s)below

question 39

Multiple Choice

Use the following information to answer the question(s) below.
-The Market's excess return for 2008 is closest to:

• A)-40.0%.
• B)-38.5%.
• C)-37.0%.
• D)-34.1%.

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Definitions:

Long-run Equilibrium

Long-run equilibrium is the condition in which all factors of production and inputs in a market are fully adjusted, prices have stabilized, and there is no tendency for change.

Long-run Phillips Curve

A graphical representation suggesting that in the long run, there is no trade-off between inflation and unemployment, as the economy adjusts to natural levels of employment.

Labor Force

The total number of workers, including both the employed and the unemployed

Expected Inflation

The rate at which general prices of goods and services are anticipated to rise over a specific period.