When We Compare PAE and Actual Output (Y) the Macroeconomic

question 36

Multiple Choice

When we compare PAE and actual output (Y) the macroeconomic variable we generally use to directly assess their equivalence is:

• A) unemployment.
• B) interest rates.
• C) inventories.
• D) capital expenditure.

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Definitions:

Accounting Profit

The financial gain calculated by subtracting total expenses from total revenues, according to standard accounting practices.

Own Capital

Resources or funds that an individual or company owns outright without any debt obligations.

Economic Profit

The deviation between complete financial gains and all-encompassing charges, covering both transparent and obscured costs.

Normal Rate

Often refers to a benchmark interest rate considered typical or average within an economic environment or financial product.