Deviations in National Output Around Potential Output Are Called a

question 4

Multiple Choice

Deviations in national output around potential output are called a

• A) business cycle.
• B) price index.
• C) Keynesian equilibrium.
• D) market phase.
• E) theory.

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Definitions:

Risk-Free Rate

The theoretical rate of return of an investment with zero risk, often represented by the yield on government bonds.

Standard Deviation

Square root of the variance.

Alpha

In investing, alpha is a measure of the performance of an investment relative to a suitable benchmark index, indicating excess or deficient return.

Security

A financial instrument representing ownership in a publicly-traded corporation (stock), a creditor relationship with a government or corporation (bond), or rights to ownership as represented by an option.