If the Output Gap Equals $50 Million,then

question 108

Multiple Choice

If the output gap equals $50 million,then

• A) cyclical unemployment equals the sum of structural and frictional unemployment.
• B) there is a recessionary gap.
• C) there is an expansionary gap
• D) there is no cyclical unemployment.
• E) potential GDP is greater than actual GDP.

---

Definitions:

Liquidating Dividend

A liquidating dividend is a type of payment made by a corporation to its shareholders during the partial or full liquidation, distributing the assets among shareholders.

Cash Dividend

A payment made by a company to its shareholders, often as a distribution of profits.

Common Stock Dividends Distributable

A portion of earnings allocated by a company to be distributed to holders of its common stock, recognized as a liability until paid out.

Paid-in Capital

Equity capital that is contributed to a corporation by its shareholders, in addition to the prescribed par value, representing funds received from investors.