Investment,as Defined by Economists,would Include the Purchase of a

question 178

Multiple Choice

Investment,as defined by economists,would include the purchase of a

• A)corporate bond.
• B)government bond.
• C)share of stock in ExxonMobil.
• D)computer by an accounting firm.

---

Definitions:

Expansionary Gap

A situation where the actual output in an economy is higher than the potential output, often leading to inflation.

Potential GDP

The maximum output an economy can achieve when all resources are used efficiently and effectively, without causing inflation.

Cost-Push Inflation

Inflation that occurs when the prices of inputs such as labor and raw materials go up, causing a reduction in the supply of these products.

Expansionary Gap

A condition where an economy's real GDP exceeds its potential GDP, leading to inflationary pressures.