When Actual Output Increases the Potential Output,_____

question 48

Multiple Choice

When actual output increases the potential output,_____.

• A)more resources become unemployed.
• B)prices remain constant.
• C)prices tend to increase.
• D)nominal GDP decreases.
• E)resource prices decrease.

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Definitions:

Cost Center

A business unit that does not directly add to profit but still incurs costs, such as a human resources department.

Cost Center

A part of an organization that does not directly add to profit but incurs costs, such as the customer service department.

Profit Center

A branch or division of a company that is treated as a separate entity for the purpose of revenue and profit calculation, allowing for better management and financial analysis.

Profit Center

A part or division of a business that is directly responsible for generating its own revenue and profit, allowing for assessment of performance.