Refer to Figure 15.2 for the Following Questions

question 21

Multiple Choice

Refer to Figure 15.2 for the following questions.
Figure 15.2
-In Figure 15.2,given the economy is at point A in year 1 and point B in year 2,what is the growth rate in potential GDP between those two years?

• A) 9.1 per cent
• B) 8 per cent
• C) 12 per cent
• D) 10 per cent

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Definitions:

Realized Gain

Gain that results from the sale of an asset or investment, which has turned into actual cash or an equivalent.

Unrealized Gain

A profit that results from an increase in value of an investment or asset but has not been realized through a sale.

Exchange Rates

The value of one currency for the purpose of conversion to another, implying how much of one currency can be exchanged for another.

Foreign Currency (FC)

Currency used in a transaction that is different from the currency of the primary economic environment in which the entity operates.