The Table Given Below Shows the Real GDP, Aggregate Expenditures

question 26

Multiple Choice

The table given below shows the real GDP, aggregate expenditures, saving, and imports of an economy. Table 10.4
Refer to Table 10.4.Given a potential GDP of $6, 000, the recessionary gap equals _____.

• A)$200
• B)$400
• C)$1, 000
• D)$2, 000
• E)$5, 000

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Definitions:

Profit Centre

A segment of a business that is responsible for both generating revenue and controlling costs, thereby directly influencing its own profitability.

Residual Income

Earnings generated beyond the minimum rate of return expected by a company or its investors, often used as a performance measure.

Gross Margin

The difference between sales revenue and the cost of goods sold, expressed as a percentage.

Average Operating Assets

The average value of assets used in the company's operations, calculated over a specific period to assess asset utilization efficiency.