-Using the Above Figure,if Full Employment Occurs at $15 Trillion

question 96

Multiple Choice

-Using the above figure,if full employment occurs at $15 trillion and the economy is actually producing $15 trillion,then there is a

• A) cyclical deficit.
• B) cyclical surplus.
• C) structural deficit.
• D) structural surplus.

---

Definitions:

Operating Activities

Day-to-day actions that a company takes in conducting its business, such as selling products, managing costs, and paying wages.

Net Income

The total profit or loss of a company after all revenues and expenses have been accounted for, also known as net earnings.

Indirect Method

A method for preparing the cash flow statement where net income is adjusted for non-cash transactions and changes in working capital to calculate net cash from operating activities.

Financing Activities

Transactions and events that affect the long-term liabilities and equity of an entity, typically involving the inflow of cash from investors or banks.