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Use the following to answer questions: Use the following to answer questions:   -(Figure: Inflationary and Recessionary Gaps)  Refer to Figure: Inflationary and Recessionary Gaps. Which equation measures an inflationary gap? A)  Y<sub>3</sub> - Y<sub>1</sub> B)  Y<sub>3</sub> - Y<sub>2</sub> C)  Y<sub>2</sub> - Y<sub>1</sub> D)  Y<sub>3</sub> - Y<sub>0</sub>
-(Figure: Inflationary and Recessionary Gaps) Refer to Figure: Inflationary and Recessionary Gaps. Which equation measures an inflationary gap?


Definitions:

ROI

Return on Investment; a financial metric used to evaluate the efficiency of an investment or compare the efficiency of several investments.

Return On Investment

Return on investment (ROI) is a financial metric used to evaluate the efficiency of an investment, calculated as the net profit divided by the cost of the investment.

ROI

Return on Investment is a performance measure used to evaluate the efficiency or profitability of an investment relative to its cost.

Residual Income

The amount of income that an entity has after all personal debts and expenses, including a mortgage, have been paid.

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