If the Economy Is Fully Employed,which of the Following Is

question 277

Multiple Choice

If the economy is fully employed,which of the following is true?

• A)The price level equals 100.
• B)Real and nominal GDP are equal.
• C)Real and potential GDP are equal.
• D)The unemployment rate is zero.
• E)Real GDP cannot increase.

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Definitions:

ROE

Return on Equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.

Total Assets

The sum of all current and non-current assets owned by a company, indicated on the balance sheet, representing the total resources available to a company.

Equity Multiplier

A financial leverage ratio that measures the portion of a company's assets that are financed by shareholder equity.

ROA

Return on Assets, a financial ratio indicating how profitable a company is relative to its total assets, measuring how efficiently those assets are used to generate profit.