In the Real Business Model, a Persistent Increase in Total

question 42

Multiple Choice

In the real business model, a persistent increase in total factor productivity causes

• A)the output demand curve shifting less than the output supply curve.
• B)the money supply to shift right.
• C)the price level to rise.
• D)real wages to fall.
• E)real interest rates to rise.

---

Definitions:

Market Share

The percentage of an industry's total sales that is earned by a particular company over a specific time period, indicating the company's size and competitiveness in the market.

BCG Matrix

The BCG matrix is a framework for analyzing a company's product portfolio based on market growth and market share, categorizing them as stars, question marks, cash cows, or dogs.

Cost Leadership Strategy

A business approach aiming to become the lowest-cost producer in the industry, often by achieving economies of scale.

Competitive Advantage

The conditions that allow a company or country to produce goods or services more effectively than competitors.