All of the Following Statements Are True Except

question 25

Multiple Choice

All of the following statements are true except

• A)the Lucas wedge is the dollar value of the accumulated gap between what real GDP per person would have been if the 1960s growth rate had persisted and what real GDP per person turned out to be.
• B)the Lucas wedge accumulated to $640,000 per person by 2013.
• C)the Lucas wedge equals real GDP minus potential GDP.
• D)the Lucas wedge arises from the slowdown of productivity growth that began during the 1970s.
• E)real GDP per person was $45,000 per year lower in 2013 than it would have been with no growth slowdown.

---

Definitions:

Current Asset

Assets expected to be converted into cash, sold, or consumed either in one year or in the operating cycle of a business, whichever is longer.

Intangible Assets

Non-physical assets that provide economic benefits to their owners, such as patents, copyrights, trademarks, and goodwill.

Balance Sheet

A financial statement that showcases a company's assets, liabilities, and stockholders' equity at a specific point in time.

Current Asset

Assets that are expected to be converted into cash, sold, or consumed within one year or the normal operating cycle of the business, whichever is longer.