When the Growth Rates of Actual and Potential GDP Diverge

question 181

Multiple Choice

When the growth rates of actual and potential GDP diverge, they usually diverge because

• A)actual GDP growth equals potential GDP growth.
• B)actual GDP growth falls below potential GDP growth.
• C)potential GDP growth rates fall below actual GDP growth rates.
• D)potential GDP growth rates fluctuate while actual GDP growth rates remain stable.

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Definitions:

Cost Cutting Measure

Strategies or actions undertaken to reduce expenses and improve efficiency within an organization or operation.

Lay Off

The temporary or permanent dismissal of employees from their job, often due to economic constraints or organizational restructuring.

Telecommuting

A work arrangement in which employees do not commute to a central place of work but instead work remotely, often from home, using telecommunications technology.

Flexible Work Arrangement

Employment terms that allow employees to vary their working hours, locations, or schedules to accommodate personal needs and improve work-life balance.