If Real GDP Is ________ Than Potential GDP,employment Is ________

question 70

Multiple Choice

If real GDP is ________ than potential GDP,employment is ________ than its full-employment level and the unemployment rate rises ________ the natural unemployment rate.

• A)more;more;above
• B)less;less;above
• C)more;less;above
• D)less;less;below
• E)less;more;above

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Definitions:

Cost System

An accounting system designed to capture, measure, and allocate costs associated with the production of goods or provision of services.

Equivalent Units

A concept in cost accounting used to convert partially completed goods into the equivalent of a full finished unit for inventory valuation.

Conversion Costs

Expenses associated with converting raw materials into finished products, typically including labor and overhead costs.

Process Costing

An accounting method used to allocate costs to products that are nearly identical and produced in a continuous process.