The Structural Deficit Is the Deficit That Occurs When

question 300

Multiple Choice

The structural deficit is the deficit that occurs when

• A) short- run aggregate supply is greater than aggregate demand.
• B) real GDP departs from potential GDP.
• C) real GDP equals potential GDP.
• D) aggregate demand is greater than short- run aggregate supply.

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Definitions:

Absorption Costing

An accounting method where all manufacturing costs, including both variable and fixed, are absorbed by the products.

Cost-plus Pricing

A pricing strategy where a fixed percentage or specified amount is added to the production cost to determine the sell price of a product or service.

Return on Investment

A profitability metric calculated as the net gain from an investment relative to its initial cost, used to measure the efficiency or profitability of an investment.

Selling Price

The sum a purchaser spends to acquire a good or service from a vendor.