Which of the Following Can Be Concluded About the Long-Run

question 136

Multiple Choice

Which of the following can be concluded about the long-run performance of the U.S.economy?

• A)It has been able to create employment opportunities but only at the cost of high inflation.
• B)It has failed to generate sufficient aggregate demand in the economy.
• C)It has been one of the most productive economies in the world in terms of growth in real GDP.
• D)It has focused fiscal policies mostly at improving aggregate supply.
• E)It has suffered from huge fiscal deficits that dampened economic growth.

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Definitions:

Fair Market Value

A price established by competitive bidding among many buyers and sellers.

Compounded Monthly

Refers to the calculation of interest where the amount earned or paid is added to the principal balance each month, causing future interest calculations to be based on the increased balance.

Perpetuity

A type of annuity that receives an infinite series of identical cash flows.

Compounded Annually

An interest calculation method where interest is added to the principal sum at the end of each year, allowing for interest to be earned on interest in subsequent years.