When Aggregate Output Is Less Than Potential Output, the Unemployment

question 33

Multiple Choice

When aggregate output is less than potential output, the unemployment rate the NAIRU.

• A)rises above
• B)rises toward but never exceeds
• C)falls below
• D)is equal to
• E)falls toward

---

Definitions:

Marginal Cost

The cost incurred in producing one additional unit of a product or service.

Transportation Network Design

The planning and structuring of the routes and methods used for moving goods and services from origin to destination efficiently.

Direct Shipping

A distribution method where goods are shipped directly from the manufacturer or supplier to the customer, bypassing any intermediaries.

Central DC

A primary distribution center in a logistics network from which goods are shipped to various locations or customers.