The Following Data Show Uruguay's GDP Using Purchasing Power Parity

question 171

Multiple Choice

The following data show Uruguay's GDP using purchasing power parity in billions of dollars. Year 2000 2001 2002 2003 2004 2005 2006 2007 2008
GDP($) 26.1 25.8 23.3 24.3 27.9 30.1 33.9 37.2 40.2
Using the data, we can conclude that

• A) the standard of living did not change in Uruguay between 2000 and 2008.
• B) Uruguay entered a recession in 2001.
• C) potential GDP decreased in 2001.
• D) Uruguay's economy reached a peak in 2005.

---

Definitions:

Full Capacity

A term referring to the maximum level of production or output that a facility can achieve under normal operating conditions.

Notes Payable

A written agreement where a borrower agrees to pay back a specified sum of money to a lender at a future date.

Accounts Receivable

Funds that a company is due to receive from its debtors for products or services that have been provided but are still outstanding in payment.

Payout Ratio

The percentage of net income distributed to shareholders in the form of dividends, representing the fraction of a company's earnings paid out.