The FE Line Is Vertical Because the Level of Output

question 32

Multiple Choice

The FE line is vertical because the level of output at full employment doesn't depend on the

• A)real wage rate.
• B)level of employment.
• C)marginal product of labor.
• D)real interest rate.

---

Definitions:

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the costs associated with making and selling the product, calculated as net income divided by revenue.

Projected Addition

Projected addition refers to the estimated increase or expansion in a company's assets, revenues, or capabilities, based on future plans or investments.

Debt-Equity Ratio

An indicator that specifies the proportional role of shareholders' equity and debt in asset funding.

Dividend Payout Ratio

The fraction of earnings a firm pays out to its shareholders in the form of dividends, expressed as a percentage of the company's total earnings.