Refer to the Figure Below

question 82

Multiple Choice

Refer to the figure below.Based on the diagram, if potential output equals 8,000 and the real interest rate is 4%, then there is ______ gap and the Fed must ______ the real interest rate so that output will equal potential output.

• A)a recessionary; raise
• B)a recessionary; lower
• C)no output; not change
• D)an expansionary; raise

Ability to analyze financial statements to assess a company’s financial health.

Know how to calculate key financial ratios and understand their implications.

Understand the components and preparation of an income statement.

Understand how to calculate earnings per share (EPS) and its significance.

---

Definitions:

Phantom Stock Plan

A form of long-term incentive that gives employees potential financial benefits, simulating stock ownership without granting actual stocks.

Company Stock

Shares of ownership in a corporation, offering a means for corporations to raise capital and for investors to potentially profit from the company's success.

Employee Involvement

The degree to which employees are allowed to participate in decision-making processes within their workplace, leading to increased job satisfaction and productivity.

Family of Measures

A collection of metrics or indicators used collectively to assess various dimensions or components of an organization's performance, acknowledging that no single measure can capture the complexity of organizational effectiveness.