If the GDP Gap Is Positive, Then

question 75

Multiple Choice

If the GDP gap is positive, then:

• A) The inflation rate is falling
• B) The unemployment rate is rising
• C) Potential GDP is greater than actual GDP
• D) Actual GDP is greater than potential GDP

---

Definitions:

Acquisition of Subsidiary

The process of obtaining control of another company, which then becomes a subsidiary, often involving the purchase of its shares.

Income Taxes Paid

The total amount of money a company pays in taxes to various tax authorities based on its taxable income.

Investing Activities

Activities concerning the acquisition and disposal of long-term assets and other investments not included in cash equivalents.

Non-Current Assets

Long-term assets that are not expected to be converted into cash within one year of the balance sheet date, including property, plant, equipment, and intangible assets.