The Business Cycle Component of the Log of Real Per

question 4

Multiple Choice

The business cycle component of the log of real per capita GDP is equal to

• A)log of trend per capita GDP - log of actual real per capita GDP.
• B)log of trend GDP divided by log of actual real GDP.
• C)log of trend GDP - log of actual real GDP.
• D)log of actual real per capita GDP - log of trend per capita GDP.
• E)log of actual real GDP divided by log of trend GDP.

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Definitions:

Gross Domestic Product

The total market value of all final goods and services produced within a country in a given period, used as a broad measure of a nation's overall economic activity.

Interstate Highway

A network of controlled-access highways that forms part of the National Highway System in the United States.

Own Garage

An individual's private parking space or storage area typically attached to or located near one's home.

Intermediate Goods

Goods that are used in the production process of other goods and services but are not part of the final product.