When the Short Run GDP and the Long Run GDP

question 95

True/False

When the short run GDP and the long run GDP coincide, then there exists an output gap in the economy.

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Definitions:

Marginal Revenue

The additional revenue that a firm receives from selling one more unit of a good or service.

Price Discriminate

The strategy of selling the same product or service at different prices to different groups of consumers, often based on their willingness to pay.

Frequent Buyer Program

A customer loyalty scheme where consumers are rewarded for making repeated purchases with a particular company.

Peak-load Pricing

A pricing strategy used to regulate demand by charging higher prices during peak usage times and lower prices during off-peak times.