If Real GDP Is Currently $500 Billion, There Is 3

question 82

Multiple Choice

If real GDP is currently $500 billion, there is 3 per cent cyclical unemployment and the potential nominal GDP is $600 billion, we can conclude with certainty that:

• A) the GDP gap is $100 billion.
• B) there is no GDP gap.
• C) there is a GDP gap.
• D) the economy is operating above full employment.

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Definitions:

Cash Dividend

A cash disbursement from a corporation to its shareholders, derived from its earnings.

Par Value

The face value of a bond or stock as stated on the certificate, which is the minimum amount the security can be sold for upon initial offering.

Stated Value

The amount per share assigned by the board of directors to no-par value stock.

Per Share Value

The financial value of a single share of a company's stock, representing a fraction of the corporation's assets and earnings per share.