According to the Text, Which of the Following Can Be

question 38

Multiple Choice

According to the text, which of the following can be used to characterize potential output?
i. Assume a perfectly smooth trend is passing through the quarter-to-quarter movements in the real GDP.
ii. Take averages of the surrounding actual GDP numbers.
iii. Gather current data from statistical agencies, such as the Bureau of Economic Analysis.

• A) i only
• B) ii only
• C) ii and iii
• D) i and ii
• E) iii only

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Definitions:

Investing Activities

Transactions that involve the purchase or sale of long-term assets and investments are considered investing activities.

Non-current Assets

Non-current assets are long-term resources owned by a company, expected to provide economic benefits beyond one year, such as property, plant, and equipment (PP&E), and intangible assets.

Direct Method

A cash flow statement presentation that lists major categories of gross cash receipts and payments.

Cost of Goods Sold

The direct expenses tied to the production of goods sold by a company, including material, labor, and overhead costs, directly affecting gross profit.