Assume a DVC Has a Real Per Capita Output of $1,000

question 58

Multiple Choice

Assume a DVC has a real per capita output of $1,000 as compared to $20,000 for an IAC. If both nations realize a 4 percent growth of their real per capita outputs, after one year the absolute real
Per capita output gap will

• A) remain unchanged at $19,000.
• B) increase by $760.
• C) decrease by $1,000.
• D) increase by $19,760.

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Definitions:

Income From Operations

Earnings generated from a company's regular, core business operations, excluding non-operational income and expenses.

Investment Turnover

A measure of the trading activity in an investment portfolio, calculated by dividing the total sales or purchases (whichever is less) of securities by the average value of the portfolio's assets.

Income From Operations

The profit generated from a business's core activities, excluding revenues and expenses from non-operational activities.

Invested Assets

Invested assets refer to the total of all investments held by an individual or institution, including stocks, bonds, real estate, and other financial assets.