Which of the Following If True Would Suggest That an Expansionary

question 59

Multiple Choice

Which of the following if true would suggest that an expansionary gap exists in an economy?

• A)Rapid inflation during a period when plant capacity utilization is below average​
• B)A steady price level coupled with a 5 percent unemployment rate
• C)An unemployment rate below its natural rate and an unexpected increase in the consumer price index
• D)Sluggish growth in the rate of inflation and an exceptional increase in the Dow Jones average
• E)A modest increase in the number of new unemployment claims and a lower than expected price level

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Definitions:

Noncontrolling Interest

Represents the equity interest in a portion of a subsidiary's net assets that is not attributable directly or indirectly to the parent company.

Common Stock

A type of equity security that represents ownership in a corporation, with holders usually having a vote in corporate decisions but in the last in line during liquidation.

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, often receiving dividends before common shareholders and having a fixed dividend rate.

Intra-Entity Transaction

Transactions that occur between two segments within the same company.