According to the AS-AD Model,when Real GDP Exceeds Potential GDP,the

question 48

Multiple Choice

According to the AS-AD model,when real GDP exceeds potential GDP,the unemployment rate is definitely

• A)greater than the natural unemployment rate.
• B)less than the natural unemployment rate.
• C)equal to the natural unemployment rate.
• D)rising.
• E)falling.

Comprehend the structure and implications of the single-index model in portfolio construction.

Calculate and interpret the number of covariances needed for portfolio diversification in different market structures.

Understand the impact of macroeconomic and firm-specific events on security returns.

Recognize the limitations of diversification in reducing portfolio risk.

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Definitions:

Fixed Cost

Costs that do not vary with the level of output or production in the short term, such as rent, salaries, and insurance premiums.

Lawn-mowing

The process of cutting grass to a uniform length, typically performed as a maintenance activity for aesthetic and health reasons in gardens and lawns.

Variable Costs

Expenditures that change in direct correlation with the amount of output or production.

Profit-maximizing Output

The level of production at which a firm can achieve the highest possible profit, given its cost structure and the price of its products or services.