Planning Is the Process Of

question 12

Multiple Choice

Planning is the process of:

• A) ensuring that a reasonable profit is made each year.
• B) creating a 'roadmap' for achieving corporate goals and objectives.
• C) just setting goals and objectives.
• D) ensuring that assets are properly used.

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Definitions:

Full Employment GDP

The maximum level of production an economy can sustain while keeping unemployment at its natural or non-accelerating inflation rate of unemployment (NAIRU).

Multiplier

In economics, a factor by which a change in spending results in an amplified change in national income and output.

Inflationary Gap

The difference between the actual output of an economy and the output it would produce without inflation, indicating an overheated economy.

Recessionary Gap

A situation where the real GDP is lower than the potential GDP at full employment, indicating underutilized resources.