In 2009,actual Output in the U

question 65

Multiple Choice

In 2009,actual output in the U.S.was 4.7 percent below the potential output.This implies that the:

• A)unemployment in the U.S.was below its natural rate.
• B)poverty level in the U.S.was below average.
• C)there was a recessionary gap in this economy.
• D)there was an expansionary gap in this economy.
• E)there was an excess demand in this economy.

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Definitions:

Debt Securities

Financial instruments representing a loan made by an investor to a borrower, typically featuring fixed terms, including interest payments and future repayment of principal.

Preferred Stocks

Shares of stock that have priority over common stock in terms of dividend payments and assets in the event of a liquidation.

Corporate Bonds

Debt securities issued by corporations to finance operations, acquisitions, or other capital requirements, which obligate the issuer to pay interest and repay the principal at maturity.

Accounting Methods

The specific rules and procedures adopted by a business for reporting income and expenses.