The GDP Gap Is the Difference Between

question 2

Multiple Choice

The GDP gap is the difference between:

• A) full-employment real GDP and nominal GDP chain price index.
• B) unemployment rate and real GDP chain price index.
• C) full-employment real GDP and actual real GDP.
• D) discouraged workers and actual real GDP.

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Definitions:

Investing Activities

Transactions involving the acquisition or disposal of long-term assets and other investments not classified as cash equivalents.

Dividends

Funds distributed by a company to its shareholders, typically from earnings.

Retained Earnings

Profits that a company has kept or retained rather than distributed to shareholders as dividends, which may be reinvested in the business.

Fiscal Year

A financial year used for accounting purposes, which in many countries is different from the calendar year.