Suppose Consumers and Business Decision Makers Become More Optimistic About

question 42

Multiple Choice

Suppose consumers and business decision makers become more optimistic about the future, and aggregate expenditures increase. The most likely result is that:

• A) real GDP and employment and income to decline.
• B) real GDP and employment rise.
• C) real GDP rises and employment falls.
• D) real GDP falls and employment rises.

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Definitions:

Economies of Scale

Cost advantages that enterprises obtain due to scale of operation, with cost per unit of output generally decreasing with increasing scale.

Function Based Divisions

Organizational structuring where a company is divided into departments based on functions such as marketing, finance, or production.

Firm

A business organization, such as a corporation, partnership, or sole proprietorship, that sells goods or services to make a profit.

M-Form Organization

A multi-divisional organizational structure, characterized by a set of autonomous divisions organized under a centralized corporate headquarters.