The Table Below Provides Macroeconomic Data for a Hypothetical Economy

question 63

Multiple Choice

The table below provides macroeconomic data for a hypothetical economy.Dollar amounts are all in constant-dollar terms.
TABLE 19-1
-Refer to Table 19-1 What is the output gap in 2012?

• A)$420 billion
• B)$418 billion
• C)-$2 billion
• D)-$20 billion
• E)$2 billion

Understand the principles of time value of money and apply them to calculate the present value and future value of cash flows.

Evaluate investment projects using net present value (NPV) and internal rate of return (IRR) methods.

Analyze and determine the profitability of investments under different interest rates.

Use the rule of 70 to estimate the doubling time of an investment at a given interest rate.

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Definitions:

Crepuscular

Crepuscular animals are those that are active primarily during twilight, that is, at dawn and dusk, taking advantage of lower light conditions.

Aposematic Coloration

The conspicuous coloring of a poisonous or distasteful organism that enables potential predators to easily see and recognize it. Also called warning coloration. Compare with cryptic coloration.

Habituation

A simple form of learning where an organism eventually stops responding to a stimulus after repeated exposures, without any reward or punishment.

Worker Bees

Female bees that are not queens and perform all the work tasks necessary for colony survival.