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Can I have help finding the solutions to questions 3,4 and 5 on my practice guide. thank you 3) The GDP Gap is defined as
Can I have help finding the solutions to questions 3,4 and 5 on my practice guide. thank you
3) The GDP Gap is defined as the real GDP minus Potential GDP: (A) where Potential GDP is zero when the economy's resources are fully employed. (B) and is positive when the unemployment rate is below the natural rate of unemployment (C) and is zero when the unemployment rate is zero. (D) where Potential GDP is negative unless the economy's resources are fully employed. 4) Which of the following would best describe a "toxic asset"? (A) A complex financial contract for which buyers are scarce because the asset is too difficult to value. (B) A complex financial contract that is held by a failing firm and has therefore become nearly worthless. (C) A complex financial contract that gains in value as the economy weakens. (D) A complex financial asset that only has value when backed by the government 5) Jack received $5000 in income for the month of June. He spent $6000 during the month on goods and services. Which of the following COULD be TRUE? (A) His financial assets grew by $1000 and his debt grew by S2000, and he is a net borrower from the economy. (B) His financial assets grew by $2000 and his debt grew by $1000. and he is a net borrower from the economy. (C) His financial assets grew by $1000 and his debt grew by $2000. and he is a net lender to the economy. (D) His financial assets grew by $2000 and his debt grew by $1000, and he is a net lender to the economy Step by Step Solution
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