Potential GDP

question 98

Multiple Choice

Potential GDP

• A)might either increase or decrease as the price level increases,depending on whether aggregate demand increases or decreases.
• B)never changes.
• C)is independent of the price level.
• D)increases as the price level increases because firms supply more goods and services.
• E)decreases as the price level increases because people demand fewer goods and services.

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Definitions:

Automobile Plant

A manufacturing facility specifically designed for the production of automobiles, including assembly and component manufacturing processes.

Routinized Tasks

Activities or duties that are standard, routine, and performed according to established procedures, often requiring little variation or decision-making.

Divisionalized Form

A loosely coupled, composite structural configuration composed of divisions, each of which may have its own structural configuration.

Unit Technology

Refers to the tools, machinery, equipment, and processes used in the production of goods or services, tailored to specific operational units.