In the Long Run, Real GDP Is Determined By

question 33

Multiple Choice

In the long run, real GDP is determined by:

• A) low and stable inflation.
• B) real forces in the economy such as investment, productivity, and technology.
• C) very low rates of unemployment.
• D) low tax rates.
• E) low oil prices.

---

Definitions:

Ratios

Quantitative measurements that show the relationship between two numerical values or financial figures, often used to analyze companies' financial health.

Treasury Stock

Shares that were issued and later reacquired by the issuing company, reducing the amount of outstanding stock on the open market.

Return On Equity

A measure of a corporation's profitability, indicating how much profit is generated with the money shareholders have invested.

Return On Assets Ratio

A financial metric used to evaluate a company's efficiency in generating profits from its assets, calculated by dividing net income by total assets.