When Actual GDP Does Not Rise as Fast as Potential

question 116

Multiple Choice

When actual GDP does not rise as fast as potential GDP, the economy most likely will experience

• A)inflation.
• B)recession.
• C)economic growth.
• D)falling unemployment.

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Definitions:

Operations

The day-to-day activities required for the ongoing production of goods or services.

Inputs and Outputs

Inputs are the resources (such as labor, raw materials, and energy) used in the production process, while outputs are the products or services generated.

Competitive Strategy

Approaches that a company takes to attract customers, withstand competitive pressures, and strengthen an organization’s market position.

Customer Needs

The wants and requirements expressed by consumers, which guide product development and market strategies.