All of the Following Statements Are True Except

question 83

Multiple Choice

All of the following statements are true except

• A)the Lucas wedge is the dollar value of the accumulated gap between what real GDP per person would have been if the 1960s growth rate had persisted and what real GDP per person turned out to be.
• B)the Lucas wedge accumulated to $400,000 per person by 2010.
• C)the Lucas wedge equals real GDP minus potential GDP.
• D)the Lucas wedge arises from the slowdown of productivity growth that began during the 1970s.
• E)real GDP per person was $30,700 per year lower in 2010 than it would have been with no growth slowdown.

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Definitions:

Cash Dividends

Profits distributed to shareholders of a company in the form of cash payouts.

Treasury Stock

Shares that were once part of the outstanding shares of a company but were bought back by the company and are held in the company's treasury.

Basic Financial Statements

Financial documents, including the income statement, balance sheet, statement of cash flows, and statement of retained earnings, that provide an overview of a company's financial condition.

Statement of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.