If Equilibrium GDP Is $1 Trillion Greater Than Full Employment

question 126

Multiple Choice

If equilibrium GDP is $1 trillion greater than full employment GDP,and there is an inflationary gap of $250 billion,the multiplier is

• A)zero.
• B)1.
• C)2.5.
• D)4.
• E)impossible to find.

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Definitions:

Market Value

The up-to-date price at which transactions for assets or services are conducted in a marketplace.

Building Account

An account used in accounting to track the costs associated with the construction or purchase of a building.

Operating Lease

A leasing arrangement that allows for the use of an asset without transferring ownership rights, typically treated as an operating expense in financial statements.

Long-Term Asset

An asset that is expected to provide economic benefits to a business for more than one fiscal year, such as property, plant, and equipment.