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Defining YtY _ { t } As Current Output Yˉt\bar { Y } _ { t }

Question 28

Multiple Choice

Defining YtY _ { t } as current output, Yˉt\bar { Y } _ { t }
As potential output, and Y~t\tilde { Y } _ { t }
As short-run fluctuations, which of the following equations is correct?


A) Yt=Y~tYˉtY _ { t } = \tilde { Y } _ { t } - \bar { Y } _ { t }
B) Y~t=YtYˉt\tilde { Y } _ { t } = Y _ { t } - \bar { Y } _ { t }
C) Y~t=Yˉt\tilde { Y } _ { t } = \bar { Y } _ { t }
D) Yˉt=0\bar { Y } _ { t } = 0
E) Y~t=Yt+YˉtYˉt\tilde { Y } _ { t } = \frac { Y _ { t } + \bar { Y } _ { t } } { \bar { Y } _ { t } }

Correct Answer:

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