If the Actual GDP Is Less Than Potential GDP

question 47

Multiple Choice

If the actual GDP is less than potential GDP:

• A)potential GDP will fall.
• B)the price level will rise.
• C)investment spending will fall.
• D)the actual unemployment rate will be higher than the natural unemployment rate.

---

Definitions:

Operating Departments

Divisions or units within a business that are responsible for carrying out the primary business activities.

Departmental Contribution

The amount of profit or revenue that a specific department within a company generates, minus its direct costs.

Revenues

The total amount of income generated by the sale of goods or services related to a company's primary operations.

Joint Products

The simultaneous production of two or more products from a single process or material, where the products are of significant value but not necessarily the same value.