The Growth Rate of Potential GDP Is the Sum of Two

question 179

Multiple Choice

The growth rate of potential GDP is the sum of two other growth rates.These other growth rates are

• A)population and resource base.
• B)goods output and services output.
• C)labor input and labor hours worked.
• D)labor input and labor productivity.

---

Definitions:

Put Option

Allows the holder to sell the asset at some predetermined price within a specified period of time.

Call Option

A Call Option is a financial contract giving the buyer the right, but not the obligation, to purchase a stock, bond, commodity, or other instrument at a specified price within a specific time frame.

Put-Call Parity

A financial principle stating that the price of a call option and a put option of the same underlying asset, with the same strike price and expiration date, should be in equilibrium.

Equilibrium

A state in a market where supply equals demand, leading to stable prices and quantities.