The Following Line Graph Shows the Expenses for Two Salespeople

question 29

Short Answer

The following line graph shows the expenses for two salespeople of the Leadwell Pencil Company. Which salesperson has more variability in his or her expenses?

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Definitions:

Nominal GDP

The aggregate value of all end products and services created inside a country during a specific time, calculated in present-day prices.

Nominal Cost

The price of a good or service without adjustment for inflation, representing the current market price.

Potential Output

Potential output refers to the total amount of goods and services an economy can produce when it is operating at full capacity and efficiency, without causing inflation.

Long-run Equilibrium

A state in which all inputs and outputs in an economy are fully adjusted and there is no tendency for change.