According to the Department of Finance,in 1994,Canada's Output Gap Was

question 113

Multiple Choice

According to the Department of Finance,in 1994,Canada's output gap was - 5.5% of potential output.In the same year,the unemployment rate was 10.3%.Okun's law implies that,in 1994,Canada's natural rate of unemployment was approximately

• A) 8.5%.
• B) 5.7%.
• C) 6.5%.
• D) 7.5%.
• E) 4.5%.

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Definitions:

Projected Benefit Obligation

A financial measurement that estimates the total amount of benefits an employer is expected to pay out to participants in a defined benefit plan.

Present Value

A financial concept that calculates the current worth of a future sum of money or stream of cash flows given a specified rate of return.

Future Salary Levels

Projected or anticipated salaries for employees, taking into account factors such as inflation, promotion prospects, and market trends.

Defined Contribution Plans

A type of retirement plan where the employer, employee, or both make contributions on a regular basis, but future benefits are based on the amount contributed and the performance of the investment options chosen by the participant.