Which of the Following Is Correct If Real GDP Is

question 186

Multiple Choice

Which of the following is correct if real GDP is $20 trillion and spending is $20.5 trillion?

• A) Spending is greater than output by $0.5 trillion.
• B) Spending is lesser than output by $0.5 trillion.
• C) Spending is greater than output by $20.5 trillion.
• D) Spending is lesser than output by $20.5 trillion.
• E) Spending is equal to output.

---

Definitions:

Transitory Component

Temporary fluctuations in financial or economic data that do not reflect long-term trends and are expected to revert over time.

Permanent Earnings Component

The part of a company's net income expected to continue in the future, excluding any extraordinary or one-time events.

Valuation-Relevant

Describes information or data that can significantly impact the valuation of a company's assets, liabilities, or equity.

Transitory Components

Temporal elements in financial reports or economic indicators that are expected to exist only for a short period and do not reflect the long-term performance or value.