Which of the Following Is True

question 224

Multiple Choice

Which of the following is true?

• A)During a recession,actual GDP will exceed potential GDP.
• B)Actual GDP cannot exceed potential GDP,even for short periods.
• C)Actual output may be either above or below potential output depending on how fully resources are utilized.
• D)The economy's potential output is the maximum output that could be achieved temporarily during a time of economic boom.

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Definitions:

Marginal Cost

The added cost of producing one additional unit of a product or service.

Value Meal

A marketing strategy that bundles meal components at a reduced price compared to purchasing them separately.

Economizing Behavior

Choosing the option that offers the greatest benefit at the least possible cost.

Lowest Priced Item

The item with the least cost among a selection of goods, often highlighted in sales or comparative shopping.