Variability in Potential GDP

question 11

Multiple Choice

Variability in potential GDP

• A) is greater than variability in actual GDP.
• B) is necessarily equal to variability in actual GDP.
• C) is less than variability in actual GDP.
• D) was affected more by the energy shocks of the 1970s than was variability in actual GDP.
• E) none of the above.

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Definitions:

LIFO

Last In, First Out, an inventory valuation method where the costs of the most recently produced or purchased items are recorded as sold first.

Inventory Unit Costs

The expense associated to procure or manufacture each unit of inventory, vital for calculating cost of goods sold and profitability.

Inventory Turnover

A ratio showing how often a company's inventory is sold and replaced over a certain period of time.

LIFO

Last In, First Out, an inventory valuation method where the most recently produced or acquired items are the first to be expensed.