In 2012,global Profits for McDonald's Increased by 6

question 230

Multiple Choice

In 2012,global profits for McDonald's increased by 6.3 percent when measured in local currencies,but fell by 0.7 percent when measured in dollars.The reason for this discrepancy is the value of the

• A)euro decreased relative to the British pound.
• B)British pound increased relative to the U.S.dollar.
• C)U.S.dollar increased relative to most other currencies.
• D)U.S.dollar decreased relative to the Japanese yen.

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Definitions:

Potential Output

The highest level of real GDP that can be sustained over the long term without increasing inflation, reflecting the economy's maximum productive capacity.

Actual Output

The real quantity of goods and services produced by an economy, as opposed to its potential or desired output.

Long-Run Equilibrium

A state in economics where all factors of production and outputs are fully optimized, with no external pressures causing shifts.

Long-Run Aggregate Supply

The total supply of goods and services that an economy can produce when it is using all of its resources efficiently and sustainably.