In the Long Run,the Output of an Economy

question 63

Multiple Choice

In the long run,the output of an economy

• A) does not grow.
• B) grows at a positive rate.
• C) depends on aggregate demand.
• D) is equal to full-employment output.
• E) depends on the price level.

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Definitions:

Fixed Expenses

Costs that do not fluctuate with changes in production level or sales volume, such as leases and insurance premiums.

Contribution Margin

The amount by which the sale of a product exceeds its variable costs, contributing towards covering fixed costs and generating profit.

Return On Investment (ROI)

A financial metric used to evaluate the efficiency or profitability of an investment, calculated by dividing the benefit (return) of an investment by the cost of the investment.

Net Operating Income

The total profit of a business after operating expenses are deducted but before taxes and interest are calculated.